361.661 Provision of certain information by
county assessor upon request of State Board.

361.662 Ratio studies and other statistical
analyses: Performance upon request of and evaluation by State Board.

361.663 Investigation and evaluation by
Department of procedures and operation of county assessor.

361.664 Preliminary finding that class or
group of properties was not assessed uniformly in accordance with methods of
appraisal and at level of assessment required by law: Scheduling and notice of
hearing.

361.665 Hearing on preliminary finding:
Order of State Board; additional hearing following order for reappraisal.

NAC 361.012“Actual age” defined. (NRS 360.090, 360.250)“Actual age” means the
total number of years from the year of the construction of an improvement to
the year of the lien date for the taxes which it affects.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

NAC 361.016“Depreciation” defined. (NRS 360.090, 360.250)“Depreciation” means,
except as otherwise provided in NAC 361.266, a loss
in the value of improvements or personal property from any cause.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;
A by R039-10, 8-13-2010, eff. 7-1-2012)

NAC 361.018“Improvement” defined. (NRS 360.090, 360.250)“Improvement” means,
except as otherwise provided in NAC 361.1133, all
appurtenances erected upon or affixed to the land, including, without
limitation, those improvements listed in paragraphs (a) and (b) of subsection 1
of NRS 361.035.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;
A by R039-10, 8-13-2010, eff. 7-1-2012)

EXEMPT PROPERTY

Fine Art for Public Display

NAC 361.030“Fine art for public display” defined. (NRS 360.090,
361.068, 361.186)As used in NAC 361.030 to 361.044,
inclusive, unless the context otherwise requires, “fine art for public display”
has the meaning ascribed to it in paragraph (b) of subsection 4 of NRS 361.068.

(1) Interest payments at a rate that does not
exceed the rate set forth in NRS
99.040 made by the taxpayer, or a subsidiary or affiliated entity of the
taxpayer, on secured or unsecured indebtedness used to acquire the work of fine
art during the fiscal year for which the taxpayer is claiming an exemption for
the work of fine art if the taxpayer complies with the provisions of NAC 361.034.

(2) Insurance payments for the work of fine
art, including, without limitation, insurance which provides a guaranty on the
authenticity of the work of fine art.

(3) Costs related to the repair, maintenance
and conservation of the work of fine art, including, without limitation,
cleaning and framing.

(4) Costs related to the moving and storage of
the work of fine art in the immediate area of the facility in which the work of
fine art is displayed.

(5) Salaries and employee benefits for persons
employed to work in the facility in which the work of fine art is displayed,
including, without limitation, gallery managers, curators, security personnel,
reservations agents and admissions personnel.

(6) Costs related to the operation and
maintenance of the facility in which the work of fine art is displayed,
including, without limitation, environmental control systems, lighting and
security systems that are specific to such a facility.

(7) Rent or other lease obligations for the
facility in which the work of fine art is displayed.

(8) Personal property taxes assessed for the
work of art, except penalties or interest assessed on such taxes.

(9) Real and personal property taxes assessed
for the facility in which the work of fine art is displayed, except penalties
or interest assessed on such taxes.

(10) Allowable depreciation pursuant to
subsection 4 of NRS 361.227 for
furniture or fixtures in the facility in which the work of fine art is displayed.

(11) Allowable depreciation pursuant to
paragraph (b) of subsection 1 of NRS
361.227 for real property on which the facility in which the work of fine
art is displayed is located and improvements to such a facility.

(12) Communication devices that are used
exclusively for informing visitors to the facility about the work of fine art.

(13) Costs for uniforms that persons who are
employed by the facility in which the work of fine art is displayed are
required to wear, including, without limitation, costs of laundering the
uniforms.

(14) Costs associated with cleaning the
facility in which the work of fine art is displayed.

(15) Commissions paid to credit card companies
for the use of credit cards to pay admission fees.

(16) Advertising costs to notify the public of
the display of the work of fine art.

(b) Not include any rent pursuant to an agreement
for the lease or loan of a work of fine art for public display.

2. “Fees collected for exhibiting the fine
art” to include, without limitation, fees paid by visitors to the facility for
the rental of communication devices that inform them about the work of fine
art.

3. “Resident” to mean a person who lives in
this State and possesses a valid driver’s license or other identification
issued by this State.

1. For a work of fine art that was acquired
with a portion of the proceeds of a secured or unsecured indebtedness, the
amount of the interest on the total indebtedness that the taxpayer may claim as
interest payments made on the art indebtedness pursuant to subparagraph (1) of
paragraph (a) of subsection 1 of NAC 361.032 must
be calculated for the fiscal year for which the taxpayer is claiming an
exemption for the work of fine art by applying the applicable rate or rates of
interest to the amount of the art indebtedness. The interest payments must be
recalculated each time that:

(a) A payment is made towards the principal of the
total indebtedness;

(b) A draw is made against the principal of the
total indebtedness; or

(c) The principal of the total indebtedness is increased
or decreased in any other manner.

2. For the purposes of the calculations
required by subsection 1:

(a) If the principal of the total indebtedness is
reduced by a principal payment or in some other manner, the principal of the
art indebtedness must be reduced as follows:

Total amount of the art
indebtedness before payment or other reduction

X

Amount of principal payment made
or other reduction of the principal of the total amount of the indebtedness

=

Reduction in the principal on the
art indebtedness

Total amount of the principal of
the indebtedness before payment or other reduction

(b) The amount of the interest payments for the art
indebtedness must be determined as follows, after reducing the total amount of
the art indebtedness by any reduction in principal calculated pursuant to
paragraph (a), reducing the total amount of the principal of the indebtedness
by the principal payment or other reduction and increasing the total amount of
the principal of the indebtedness by the amount of any increase in the total
amount of the principal of the indebtedness:

Total amount of the art indebtedness

X

Interest accrued on the total
amount of the indebtedness

=

Amount of interest accrued on the
art indebtedness

Total amount of the principal of
the indebtedness

3. If a taxpayer, or a subsidiary or
affiliated entity of the taxpayer, incurs interest expenses on indebtedness, a
portion of the proceeds of which were used to acquire a work of fine art, the
burden for appropriately allocating the principal payments and interest
expenses for the work of fine art between the taxpayer and the subsidiary or
affiliated entity of the taxpayer and between the work of fine art and the
other items acquired with the proceeds of the indebtedness is on the taxpayer
who is claiming an exemption for the work of fine art pursuant to paragraph (j)
of subsection 1 of NRS 361.068.

4. If, for the purposes of claiming an
exemption pursuant to paragraph (j) of subsection 1 of NRS 361.068, a taxpayer acquires a
work of fine art using the proceeds of an indebtedness, the taxpayer must incur
the indebtedness for the work of fine art within 120 days after the acquisition
of the work of fine art unless the Department agrees to an extension of time.

5. To qualify or remain eligible for an
exemption pursuant to paragraph (j) of subsection 1 of NRS 361.068, a taxpayer who wishes
to refinance the outstanding amount of the indebtedness incurred to purchase
the work of fine art must be able to trace the new debt directly to the
repayment of the prior debt.

6. As used in this section, “art
indebtedness” means the amount of the principal of the total indebtedness
attributable to the acquisition of the work of fine art.

(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

NAC 361.036Apportionment of direct costs when works of art consist of more
than fine art. (NRS 360.090, 361.068, 361.186)If an exhibition does not
consist solely of fine art for public display owned by the taxpayer, the
Department will apportion the direct costs of owning and exhibiting the fine
art based on the percentage that the value of the fine art for public display owned
by the taxpayer bears to the value of all the works of art included in the
exhibition.

(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

NAC 361.038Requirements to receive credit for donations to certain museums. (NRS 360.090,
361.068, 361.186)For a taxpayer to receive
a credit for a donation to a museum that provides exhibits specifically related
to nature or a museum that provides exhibits specifically related to children,
such a museum must be operated by an organization that:

1. Qualifies for exemption from taxation
pursuant to section 501(c)(3) of the Internal Revenue Code; and

2. The net earnings of which do not inure to
the benefit of any private shareholder or other person.

(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

NAC 361.040Affidavit for claiming exemption: Form; contents. (NRS 360.090,
361.068, 361.186)The affidavit that a
taxpayer who is claiming an exemption pursuant to paragraph (j) of subsection 1
of NRS 361.068 must file
pursuant to paragraph (a) of subsection 3 of NRS 361.068 with the county
assessor on or before June 15 of each year in which the taxpayer claims the
exemption must:

1. Be notarized;

2. Be in a form prescribed by the
Department; and

3. Contain:

(a) A statement that the work of fine art will meet
the criteria set forth in paragraph (b) of subsection 4 of NRS 361.068 during the following
fiscal year;

(b) A description of the work of fine art for which
the taxpayer is claiming an exemption;

(c) The purchase price or appraisal value of the
work of fine art;

(d) The fiscal year for which the exemption is
sought; and

(e) A statement in substantially the following
form:

“I, ____________, state under oath and pursuant to the
conditions set forth in NRS 361.185
and 361.265, that the attached
claim for the property tax exemption is made in good faith and to the best of
my knowledge and belief is a true, correct and complete statement that said
property meets the requirements of NRS
361.068. Further, I authorize the Nevada Tax Commission or its designee to
inspect the fine art for public display for which I am claiming an exemption
and any supporting documents, or otherwise verify the validity of my claim.”

(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

NAC 361.044Provision of poster to school or parent of child who receives
in-home instruction. (NRS 360.090, 361.068, 361.186)Upon receiving a request
for a poster pursuant to paragraph (b) of subsection 3 of NRS 361.068, the taxpayer shall
select which poster to provide to the school or parent.

(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

Property Used for Control of Air and Water Pollution

NAC 361.046Examples of facilities, devices to which exemption does not
apply. (NRS 360.090, 361.077)Examples of facilities and
devices to which the exemption from taxation provided by NRS 361.077 does not apply are:

1. A mining operation or the generating
facility of an electric utility which, in the treatment of water for reentry
into public streams, distills and sells the water at a minor additional cost
and offsets the total cost of the treatment and distilling process.

2. The installation of pollution control
equipment to remove air pollutants from fuel exhausts and better utilize the
fuel in manufacturing or industrial plants or where recovery of minerals in
mining operations is made possible which results in a lower overall operating
expense ratio.

3. Facilities or equipment, including
blacktop for roadways and parking areas, water trucks and sprinkling systems,
which are necessary for the normal operation of the enterprise and which are
not specifically exempted by statute or the Constitution or which are not
required by the appropriate environmental agencies.

NAC 361.048Application of exemption to additions, modifications of
operational devices. (NRS 360.090, 361.077)If an addition is made to
or a modification is made in a device whose primary purpose is operational, but
the addition or modification is a “facility, device or method for the control
of air or water pollution” as defined in NRS 361.077, the value of the
addition or modification, but not the value of the entire device, is exempt
from taxation.

1. An affidavit on a form approved by the
Department for claiming an exemption pursuant to NRS 361.077 must be supplied
annually to the county assessor of the county in which the property is located
or to the Department if the property is of an intercounty or interstate nature
as defined in NRS 361.032.

2. Owners of property of an interstate
nature, as defined in NRS 361.032,
shall report only those properties physically located in Nevada.

3. The taxpayer shall maintain accurate
records which will reflect the additional net revenue to the operation which
results from the installation of any equipment for which an exemption is
claimed pursuant to NRS 361.077.

4. Copies of any orders from regulatory
agencies directing the installation of a device or equipment must be submitted
upon request to the county assessor or the Department.

1. For the purpose of NRS 361.079, a county
assessor may consider value added by a qualified system as the difference
between the cost of the building with the qualified system and the cost of a
building constructed in a conventional manner without a qualified system and
put to the same or a similar use. For example, a building of masonry
construction used to provide solar energy may be valued on the basis of frame
construction.

2. The value added by that portion of a
qualified system which is not used for heating or cooling or to provide
electricity or is essential to a conventionally built structure, must be
included in the assessed value of the building. For example, a qualified system
with an enclosed area for a solarium or sun space that is also used as a
limited living area may be valued as an enclosed porch if it facilitates the
use of solar energy.

(Added to NAC by Tax Comm’n, eff. 4-24-84)

NAC 361.054Form for requesting valuation. (NRS 360.090, 360.250, 361.079)A county
assessor may provide an appropriate form for the owner of a building to request
the valuation of a qualified system. If an owner does not complete such a form,
the owner may not be precluded from appealing the valuation of the building to
the county board of equalization.

(Added to NAC by Tax Comm’n, eff. 4-24-84)

NAC 361.056Documentation to determine conformity to standards. (NRS 360.090,
360.250, 361.079)A county
assessor, a county board of equalization or the State Board of Equalization may
require documentation from the owner of a building who has requested the
valuation of a qualified system to determine whether it conforms to the
standards established by the Department and functions to conserve energy.

(Added to NAC by Tax Comm’n, eff. 4-24-84)

NAC 361.058List of buildings with qualified systems. (NRS 360.090,
361.079)On or
before April 1 of each year, each county assessor shall submit to the
Department for the preceding year a written list of the buildings in his or her
county which have qualified systems.

1. All tangible personal property which is
purchased by a business and which is claimed to be exempt pursuant to paragraph
(d) of subsection 1 of NRS 361.068
must be consumed during the operation of the business and must not be intended
to become a component part of a manufactured item for sale or lease.

2. The personal property for which such an
exemption is claimed must be material that is:

(a) Used up, drained, absorbed, dissipated or
expended during the normal day-to-day operation of the business;

(b) Characterized by its individual low cost in
relation to the other more expensive fixed assets of the business;

1. Application for an exemption pursuant to NRS 361.099 must be made to the
county assessor by June 15 of each year.

2. The application must include a copy of
the rental agreement and documentation from the lessor that proves that the
total consideration for the rental or lease of the property is less than 10
percent of the fair market value of the property. Documentation may include,
but is not limited to:

(a) A copy of the lease of the previous tenants;

(b) A copy of the lease or notarized statement from
owners of similar or like properties; and

1. As used in NRS 361.0605, the Department shall
interpret “park” to mean a detached tract of privately owned real property that
is set apart and maintained for public use, generally of quite sizable
proportions devoted to purposes of ornamentation and recreation, and usually
platted out with trees and ornamented in a way pleasing to the eye as well as
furnishing an opportunity for open-air recreation.

2. To qualify as a park for the purposes of
the exemption provided by NRS
361.0605, a sign which is clearly legible and visible from ground level
must be posted at each entrance to the park stating “This park is open to the
public for all to use.”

(Added to NAC by Tax Comm’n, eff. 9-6-96)

NAC 361.085“Portable goods and storage sheds and other household equipment”
interpreted. (NRS 360.090, 361.069)As used in subparagraph
(8) of paragraph (a) of subsection 4 of NRS 361.069, the Department shall
interpret “portable goods and storage sheds and other household equipment” to
include, without limitation:

1. A portable shed which is less than 120
square feet in area and which does not have a foundation;

2. A portable carport or aluminum awning which
is less than 120 square feet in area and which does not have a foundation;

3. A satellite dish that is owned by the
owner of the dwelling unit or a person who resides in the dwelling unit;

4. Decorative outdoor lighting;

5. A freestanding wood stove;

6. A portable spa;

7. A swamp cooler or air-conditioning unit
that is attachable to the window of dwelling units;

1. An owner of property who wishes to
qualify the property for exempt status pursuant to NRS 361.082 must apply to the
county assessor for the exemption not later than June 15 of each year. The
application must be on a form approved by the Commission.

2. Except as otherwise provided in this
section, an application for the exemption of property pursuant to NRS 361.082 must contain
information showing:

(a) That the property is part of a qualified
low-income housing project funded in part by federal money appropriated
pursuant to 42 U.S.C. §§ 12701 et seq. for the year in which the exemption
applies;

(b) That the property, including related
facilities, has been occupied or used by qualified residents or will be used
exclusively as low-income units as of June 15 of that year; and

(c) The total number of qualifying low-income units
and the number of units rent-restricted and currently occupied by persons
meeting the income limitation applicable under 26 U.S.C. § 42(g)(1).

3. The following additional documentation
must also be attached to the application:

(a) Documentation showing the property is part of a
qualified low-income housing project, including, without limitation:

(1) A declaration of restrictive covenants;

(2) A letter of verification from the
appropriate housing agency in charge of dispensing federal funds which states
that the project qualifies as a qualified low-income housing project and
includes the type of federal funding granted, the date on which the funding was
granted and the date of expiration of the funding; or

(3) Any other verification of the disbursement
of federal funding and the date of the disbursement.

(b) Documentation showing the election of the
taxpayer to qualify as a low-income housing project under the 20-50 test or the
40-60 test pursuant to 26 U.S.C. § 42(g). Such documentation may include,
without limitation, a copy of that portion of a federal income tax return
claiming the federal tax credit.

(c) For an initial application, a copy of:

(1) The first quarter or annual status report
for the project issued by the appropriate housing agency showing the number of
units, the sizes of the units, the names of the tenants occupying those units,
the sizes of the households living in those units, the actual amount of rent
paid by the tenants of those units, the utility allowance, the annual household
incomes of the tenants of those units and the rental activity for those units;
and

(2) Area median income limits published each
year by the Department of Housing and Urban Development used in the
determination of eligibility for Section 8 subsidized rental housing which are
incorporated in the income limits for the Home Investment Partnerships Program
as of March 31 of the most current year.

4. Each owner of property who receives an
exemption for low-cost housing shall annually file with the county assessor:

(a) A report that includes the information and
documentation identified in subsections 2 and 3; or

(b) An affidavit providing that information on a
form approved by the Commission.

5. An owner of property need not include on
his or her renewal form the documentation and information described in
paragraph (a) of subsection 2.

6. The owner of the property shall maintain
accurate records in support of the information requested.

7. The county assessor shall disallow claims
for exemption on any unit that:

(a) Is not rent-restricted; or

(b) Is not a part of a qualified low-income housing
project funded in part by federal money appropriated pursuant to 42 U.S.C. §§
12701 et seq. for the year in which the exemption is sought.

8. Any claim for exemption denied by the
county assessor affecting the taxable value of the property may be appealed to
the county board of equalization in accordance with NRS 361.345.

9. As used in this section:

(a) The “20-50 test” means a test that requires 20
percent or more of the residential units in the low-income housing project to
be both rent-restricted and occupied by natural persons whose income is 50
percent or less of the area median gross income.

(b) The “40-60 test” means a test that requires 40
percent or more of the residential units in the low-income housing project to
be both rent-restricted and occupied by natural persons whose income is 60
percent or less of the area median gross income.

(c) “Low-income unit” means any unit in a building
that:

(1) Is rent-restricted pursuant to 26 U.S.C. §
42(g)(2);

(2) Is occupied by persons who meet the income
limitations applicable under the 20-50 test or the 40-60 test, as appropriate;
and

(d) “Qualified low-income housing project” means
any project for residential rental property meeting the 20-50 test or the 40-60
test, whichever is elected by the taxpayer pursuant to 26 U.S.C. § 42.

(e) “Related facilities” means that part of
qualified low-income housing occupied or used exclusively by persons with low
incomes, including, without limitation, playgrounds, community rooms, the
manager’s office and the low-income unit.

NAC 361.107“Abstraction method” defined. (NRS 360.090, 360.250)“Abstraction method” means
a method of estimating the value of land by subtracting from the sales prices
of improved parcels the full contributory value of all items attributable to
the value of the improvements, thus yielding estimates of the residual or remainder
value of the land.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

NAC 361.1073“Accrued depreciation” defined. (NRS 360.090, 360.250)“Accrued depreciation”
means the amount of loss in the value of an improvement relative to its
replacement cost, reproduction cost or original cost as a result of physical
deterioration, functional obsolescence or economic obsolescence.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1075“Adjustment” defined. (NRS 360.090, 360.250)“Adjustment” means a
modification of the reported value of a variable, such as sale price or gross
income, using a model calibration technique for the purpose of estimating the
full cash value of property.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.109“Allocation method” defined. (NRS 360.090, 360.250)“Allocation method” means
a method used to value land, in the absence of a sufficient number of sales of
vacant land, by estimating a typical ratio of land to total value and applying
that ratio to comparable improved properties to determine the value that the
land contributes to the total value of the subject property.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;
A by R039-10, 8-13-2010, eff. 7-1-2012)

1. The parcel or other area of land being
appraised is compared to a base lot consisting of a parcel or hypothetical area
of land having common or typical characteristics and a known value; and

2. Any differences between the parcel or
other area of land being appraised and the base lot with respect to location,
size, shape, topography and similar factors are analyzed by the appraiser,

Ê to estimate
the value of the land being appraised.

(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

NAC 361.111“Capitalization of ground rents” defined. (NRS 360.090,
360.250)“Capitalization
of ground rents” means the estimation of the value of land in the absence of
comparable sales by capitalizing the revenue from market-rate leases of land.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

NAC 361.1113“Comparative unit method” defined. (NRS 360.090,
360.250)“Comparative
unit method” means a method of appraising land pursuant to which an average or
typical value is estimated for each stratum of land, using square feet, front
feet, acres, buildable units or other similar units of comparison.

(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

NAC 361.1115“Cost of development method” defined. (NRS 360.090,
360.250)“Cost of
development method” means a method used to estimate the value of undeveloped
land in which direct and indirect costs and entrepreneurial profit are deducted
from an estimate of the probable proceeds to be obtained from selling the land
as developed parcels and the resulting net income is discounted to a present
value at a market-derived rate.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

NAC 361.1117“Cost of replacement” defined. (NRS 360.090, 360.250)“Cost of replacement”
means the total cost of construction required to replace an improvement with a
substitute of like or equal utility using current standards of materials and
design, including the cost of any pertinent labor, materials, supervision,
contractors’ profit and overhead, architects’ plans and specifications, sales
taxes and insurance.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1125“Expected absorption period” defined. (NRS 360.090,
360.250)“Expected
absorption period” means the length of time within which all the parcels in a
qualified subdivision may reasonably be expected to be sold, rented or occupied
if they are actively marketed. The period begins on July 1 of the year for
which the tax on the parcels is levied and ends on the date determined by the
county assessor.

(Added to NAC by Tax Comm’n, eff. 11-14-88)

NAC 361.1127“Fixture” defined. (NRS 360.090, 360.250)“Fixture” means an item,
other than a trade fixture, that was originally personal property which has
been installed or attached to land or an improvement in a permanent manner. As
used in this section, “installed or attached to land or an improvement in a
permanent manner” means that:

1. Either:

(a) An item is attached to, imbedded in or
permanently resting upon land or an improvement, or is attached by other means
that are normally used for permanent installation, and cannot be removed
without substantially damaging the item or the land or improvement with which
it is being used; or

(b) The use or purpose of an item that is not
otherwise physically annexed to land or an improvement is so adapted that it
is:

(1) A necessary, integral or working part of
the land or improvement;

(2) Designed or committed for use with the
land or improvement; or

(3) So essential to the land or improvement
that the land or improvement cannot perform its desired function without the
nonattached item; and

2. A reasonable person would consider the
item to be a permanent part of the land or improvement, taking into account
annexation, adaptation and other objective manifestations of permanence,
including, without limitation, whether:

(a) Removal of the item would destroy the item or
cause significant damage to the real property to which it is installed or attached;

(b) The historic use of the item indicates an
intention to leave the item in place;

(c) The terms of a written agreement between
parties indicates the intention of a tenant or lessee to remove or transfer
ownership of the item; or

(d) Ownership of the item would be conveyed with a
transfer of the real property to which it is installed or attached.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012; A by R068-12, 9-14-2012)

NAC 361.113“Improved land” defined. (NRS 360.090, 360.250)“Improved land” means land
on which there are any improvements sufficient to allow the identification of
or establish the current actual use.

NAC 361.1133“Improvement” defined. (NRS 360.090, 360.250)“Improvement” means any
building, fixture or other structure erected upon or affixed to the land,
including, without limitation, any of those improvements listed in paragraphs
(a) and (b) of subsection 1 of NRS
361.035. The term does not include any land enhancements.

1. Physical modifications of the land whose
contribution to the value of the land is not subject to wear and tear or to exhaustion,
such as, without limitation, excavation and other earthwork; and

2. Rights which allow the land to be put to
any use.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.115“Land residual technique” defined. (NRS 360.090,
360.250)“Land
residual technique” means a method used to estimate the value of land from a
knowledge of normal net income, the discount rate, the remaining economic life
of the property and the full contributory value of any improvements and
nonrealty items. The method isolates a measurable income stream attributable to
the improvements and then estimates the value of the land by capitalizing the
income stream attributable to the land.

(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

NAC 361.1155“Mass appraisal technique” defined. (NRS 360.090,
360.250)“Mass
appraisal technique” means a procedure for the valuation of a group of
properties as of a given date using either a base lot method or comparative
unit method.

(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;
A by R039-10, 8-13-2010, eff. 7-1-2012)

NAC 361.116“Obsolescence” defined. (NRS 360.090, 360.250)“Obsolescence” means an
impairment to property resulting in the full cash value of the property being
less than its taxable value as otherwise computed.

[Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]

NAC 361.1163“Off-site enhancements” defined. (NRS 360.090, 360.250)“Off-site enhancements”
means improvements and land enhancements outside the boundaries of the subject
property which facilitate the development of the property for any use,
including, without limitation, such improvements and land enhancements that do
not prepare the property for a specific use, such as streets, traffic signals,
curbs, gutters and sidewalks, and such improvements and land enhancements for
the provision of water service, sewer service, electricity service, natural gas
service, telephone service and service for the transmission of data.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1165“On-site enhancements” defined. (NRS 360.090, 360.250)“On-site enhancements”
means land enhancements within the boundaries of the subject property which
facilitate the development of the property for any use.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1167“Parcel” defined. (NRS 360.090, 360.250)“Parcel” means a
contiguous area of land which is:

1. Held under common ownership;

2. Subject to conveyance separately from
other land; and

3. Identified by an assessor’s parcel number
in accordance with the provisions of NRS
361.189 to 361.220,
inclusive.

1. “Real property” has the meaning ascribed
to it in NRS 361.035 and
includes:

(a) Land;

(b) Fixtures;

(c) Improvements;

(d) On-site enhancements; and

(e) Any rights, interests, benefits and privileges
belonging or attached to the land.

2. The term does not include a trade
fixture.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012; A by R068-12, 9-14-2012)

NAC 361.1172“Regression analysis” defined. (NRS 360.090, 360.250)“Regression analysis”
means a statistical technique used to analyze data to predict the value of one
variable from the known values of other variables.

(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

NAC 361.1173“Single property technique” defined. (NRS 360.090,
360.250)“Single
property technique” means a procedure for the valuation of a single parcel or
other area of land as of a given date.

(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;
A by R039-10, 8-13-2010, eff. 7-1-2012)

1. Is installed or attached nonpermanently
to real property by an owner or tenant for the purpose of conducting a business
or trade and not for the enhancement of the real property to which it is
installed or attached; and

2. Has a unique identity and function which
is related to the business or trade for which it is installed or attached and
which is distinct from the real property to which it is installed or attached.

(Added to NAC by Tax Comm’n by R068-12, eff. 9-14-2012)

NAC 361.1175“Units of comparison” defined. (NRS 360.090, 360.250)“Units of comparison”
means the components into which properties may be divided for the purpose of
comparing sales, such as, without limitation, the sale price for property as a
whole or for property per square foot, front foot, cubic foot, acre, lot,
dwelling unit, room, bed, seat or floor-area ratio.

(a) The Standard on Mass Appraisal of Real
Property, January 2008 edition, as published by the International
Association of Assessing Officers. A copy of that publication may be obtained
from the International Association of Assessing Officers, 314 West Tenth
Street, Kansas City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store,
for the price of $10. A free copy of that publication may be obtained at the
Internet address http://www.iaao.org/uploads/StandardOnMassAppraisal.pdf.

(b) The Standard on Automated Valuation Models
(AVMs), September 2003 edition, as published by the International
Association of Assessing Officers. A copy of that publication may be obtained
from the International Association of Assessing Officers, 314 West Tenth
Street, Kansas City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store,
for the price of $8. A free copy of that publication may be obtained at the
Internet address http://www.iaao.org/uploads/AVM_STANDARD.pdf.

(c) Property Appraisal and Assessment
Administration, 1990 edition, as published by the International Association
of Assessing Officers. A copy of that publication may be obtained from the
International Association of Assessing Officers, 314 West Tenth Street, Kansas
City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store,
for the price of $75.

(d) The Residential Cost Handbook, as
published by Marshall & Swift on August 13, 2010. A copy of that
publication may be obtained from Marshall & Swift, 911 Wilshire Boulevard,
16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,
for the price of $308.95.

(e) The Marshall Valuation Service, as
published by Marshall & Swift on August 13, 2010. A copy of that
publication may be obtained from Marshall & Swift, 911 Wilshire Boulevard,
16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,
for the price of $562.95.

(f) The Residential Estimator software, as
published by Marshall & Swift on August 13, 2010. A copy of that software
may be obtained from Marshall & Swift, 911 Wilshire Boulevard, 16th Floor,
Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,
for the price of $980.95.

(g) The Commercial Estimator software, as
published by Marshall & Swift on August 13, 2010. A copy of that software
may be obtained from Marshall & Swift, 911 Wilshire Blvd., 16th Floor, Los
Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,
for the price of $1,146.95.

2. If any of the publications adopted by
reference pursuant to:

(a) Paragraph (a), (b) or (c) of subsection 1 is
revised, the Commission will review the revision to determine its suitability
for this State. If the Commission determines that the revision is not suitable
for this State, the Commission will hold a public hearing to review its
determination and give notice of that hearing within 30 days after the date of
the publication of the revision. If, after the hearing, the Commission does not
revise its determination, the Commission will give notice that the revision is
not suitable for this State within 30 days after the hearing. If the Commission
does not give such notice, the revision becomes part of the pertinent
publication adopted by reference pursuant to subsection 1.

(b) Paragraph (d), (e), (f) or (g) of subsection 1
is revised, the Executive Director shall review the revision to determine its
suitability for this State. If the Executive Director determines that the
revision is suitable for this State, the Executive Director shall notify each
county assessor in this State of that determination and the revision becomes
part of the pertinent publication adopted by reference pursuant to subsection
1.

3. Each county assessor shall maintain for
public review a copy of each publication adopted by reference pursuant to
paragraphs (a) to (e), inclusive, of subsection 1.

1. If sufficient sales of comparable
properties which were vacant at the time of sale are available, a county
assessor shall determine the full cash value of land by applying the sales comparison
approach using:

(a) A mass appraisal technique in accordance with
the provisions of NAC 361.11795 to 361.1188, inclusive; or

(b) A single property technique in accordance with
the provisions of NAC 361.118 to 361.1188, inclusive.

2. If insufficient sales of comparable
properties which were vacant at the time of sale are available to carry out
subsection 1, a county assessor shall determine the full cash value of land as
provided in NAC 361.119.

(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;
A by R039-10, 8-13-2010, eff. 7-1-2012)

1. The county assessor shall stratify the
properties being appraised into groups based upon location, zoning, use or
other relevant characteristics. Sufficient strata must be established to ensure
that all types of property subject to appraisal are appropriately represented.

2. After stratification pursuant to
subsection 1, the county assessor shall:

(a) For each stratum:

(1) Analyze sales of comparable land; and

(2) Make adjustments to the sales prices as
necessary to eliminate any nonrealty components of value and any differences
resulting from the real property rights conveyed, financing terms, conditions
of sale, market conditions, location, physical characteristics, size, zoning,
use, governmental restrictions, sales concessions and expenditures made after
sales that influence sales prices; and

(b) Determine an appropriate base lot or comparative
unit value to be used as a benchmark for valuing the properties in each stratum
and, if appropriate, market adjustments to the base lot or comparative unit
value for differences in physical characteristics, size, zoning, use, view,
governmental restrictions and other attributes that affect value. The
adjustments:

(1) Must be mathematical changes made to the
base lot or comparative unit values to account for differences in the elements
of comparison between the base lot or comparative unit and the subject
property;

(2) May be made only to the base lot or
comparative unit value in order to reflect the value of the subject property;
and

(3) May be made by adding or subtracting
lump-sum dollar values, or by applying positive or negative percentage
differentials, to the base lot or comparative unit values.

(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;
A by R039-10, 8-13-2010, eff. 7-1-2012)

1. The county assessor shall adjust the
sales prices or unit values of comparable properties as necessary to eliminate
differences between the comparable properties and the subject property that
affect value. The adjustments:

(a) Must be mathematical changes made to the sales
prices or unit values of the comparable properties to account for differences
in elements of comparison between the comparable properties and the subject
property;

(b) May be made only to the comparable properties,
and not to the subject property; and

(c) May be made by adding or subtracting lump-sum
dollar values, or by applying positive or negative percentage differentials, to
the sales prices or unit values of the comparable properties.

2. The elements of comparison between the
comparable properties and the subject property that may be used by the county
assessor include, without limitation, the real property rights conveyed,
financing terms, conditions of sale, market conditions, location, physical
characteristics, size, zoning or use, governmental restrictions and nonrealty
components of value.

3. After adjusting the comparable properties
for differences that affect value, the county assessor shall analyze the range
of adjusted sales prices of the comparable properties to arrive at an estimate
of value for the subject property.

1. If the subject property is improved land,
the comparable properties must have a use that is consistent with that of the
improved land.

2. The elements of comparison used and
adjustments made by the county assessor must be identifiable and supported by
verifiable market data.

3. If it is necessary to make an adjustment
to recognize the view influence or any other property attribute associated with
the subject property, the county assessor shall:

(a) Make a physical determination of the view
influence from the land of each respective view parcel. The county assessor
shall make the view influence determination from any area on the parcel that is
capable of development. This would exclude legally required setbacks or
portions of the parcel subject to applicable land use restrictions or
applicable deed restrictions that prohibit development.

(b) Upon the written request of the owner, provide
to the owner as soon as practicable, but not later than 15 days after receiving
the request, current market evidence for each adjustment for the view influence
or other property attribute. In a county whose population is 40,000 or more,
“current market evidence” as used in this paragraph means sales data concerning
sales of improved or unimproved parcels that occurred during the 36-month
period immediately preceding July 1 of the year before the lien date, unless
the Commission has approved the petition of the county assessor to consider
sales that occurred before that 36-month period.

(c) Upon the written request of the owner, provide
to the owner as soon as practicable, but not later than 15 days after receiving
the request, a comprehensive written analysis describing any mass appraisal or
single property technique used, written in such a manner that the taxpayer can
determine whether the value of the parcel has been appropriately adjusted by
the county assessor. For an appraisal made using a:

(1) Single property technique, the written
analysis must describe each adjustment, whether attributable to view influence
or another property attribute, and how each adjustment was made.

(2) Mass appraisal technique, the written
analysis must describe the stratum in which the parcel was included, the
comparable sales and any adjustments thereto used to develop a base lot or
comparative unit value for the stratum, and any adjustments made to the base
lot or comparative unit value to determine the value of the property.

(d) Consider whether an adjustment is necessary
because of impairments caused by obstructions or aesthetic criteria, including,
without limitation, tree growth, utility lines, water tanks or the presence of
other improvements.

(a) Must stratify comparable properties into the
primary categories of land use prescribed by the Department pursuant to NAC 361.1178; and

(b) May also stratify those properties:

(1) Into any secondary categories of land use
prescribed by the Department pursuant to NAC 361.1178;
and

(2) If those properties are used in a similar
or competitive manner, into geographic market areas. Geographic market areas
must be initially defined by major natural, political or human-constructed
boundaries and then further defined by areas of complementary land uses or
neighborhoods, in which all the properties are similarly influenced by
environmental, governmental, social and economic forces. Additional criteria
may be considered for defining a geographic market area, including, without
limitation, the size of the parcels or subdivisions of land.

2. For the purposes of carrying out this
section, a county assessor:

(a) Must determine the number of land use
categories and geographic market areas to use in the stratification of
comparable properties based upon on the size and diversity of the geographic
area being analyzed and the number of sales available within each proposed
stratum; and

(b) May, if a geographic market area crosses county
boundaries, cooperate with other county assessors in the exchange of
information.

1. In determining whether the sales price of
each comparable property is representative of the full cash value of the
subject property, the county assessor must acquire sufficient sales data
concerning the comparable property. The sales data may include, without
limitation:

(a) The total amount paid for the property and the
terms of sale;

(b) The names and contact information of the buyer
and seller;

(c) The relationship of the buyer and seller;

(d) The legal description, address and parcel
identifier of the property;

(e) Information concerning the type of transfer
that is sufficient to enable the county assessor to determine whether the
transfer was at arm’s length;

(f) The length of time the property was on the
market;

(g) The extent of the interest transferred to the
buyer;

(h) The nature of nonrealty items; and

(i) The date of the transfer.

2. The county assessor may determine the
accuracy of the sales data acquired pursuant to subsection 1 by:

(a) Contacting the buyer, seller, title company or
any other knowledgeable participant in the transaction;

(b) Using sales questionnaires;

(c) Conducting personal interviews; or

(d) Reviewing declarations of value.

Ê The county
assessor shall disclose to each person he or she contacts for information
pursuant to this subsection that the information provided by the person will
only be used to establish value for the purposes of property taxation.

3. The following types of sales may provide
unreliable information regarding full cash value and require additional
verification to determine whether the sale represents full cash value:

(e) Sales of convenience, including, without
limitation, a sale intended to correct a flaw in title;

(f) Sales settling an estate;

(g) Forced sales, including, without limitation, a
sale resulting from a judicial order; and

(h) Sales involving doubtful title.

4. The county assessor may sort sales and
other market data into homogeneous groups to reflect different market
influences and variations in zoning, other land-use controls and probable use,
and to ensure that land values will reflect market data for parcels with
similar or competitive uses in the same area.

(a) The amount of the adjustments to comparable
sales or to the base lot or comparative unit value must be determined using
paired sales analysis, sales-resales analysis, regression analysis or another
model calibration technique in accordance with the provisions of chapters 6 and
15 of Property Appraisal and Assessment Administration, as adopted by
reference in NAC 361.1177.

(b) If multiple types of adjustments to comparable
sales or to the base lot or comparative unit value are necessary, those
adjustments must be made as follows:

(1) Any transactional adjustments must be made
to the total sale price in the following sequential order:

(I) Adjustments for the real property
rights conveyed.

(II) Adjustments for the financing terms.

(III) Adjustments for the conditions of
sale, including any sales concessions.

(IV) Adjustments for expenditures made
immediately after the purchase.

(V) Adjustments for market conditions.

(2) After making all the applicable
transactional adjustments described in subparagraph (1), units of comparison
must be calculated based upon the adjusted sale price, and then adjusted for
differences in location and any physical, economic and other characteristics
which affect value.

2. For the purposes of this section:

(a) “Adjustments for market conditions” means
adjustments to reflect increases or decreases in property values in the market
for property over time.

(b) Adjustments for market conditions must not be
made unless property values for the same general area and classification of
property have increased or decreased since the transaction dates. To make such
an adjustment, the difference in sales prices of the same or similar properties
over time must be measured to extract a rate of adjustment to apply to
comparable sales to improve comparability.

1. If a county assessor is not able to use
the sales comparison approach for land pursuant to NAC
361.11795 or 361.118 because sufficient sales
of comparable properties which were vacant at the time of sale are not
available, the county assessor shall determine the full cash value of land
through any of the following methods, either in combination with available land
sales or as the sole method of valuation:

(a) Abstraction method;

(b) Land residual technique;

(c) Capitalization of ground rents;

(d) Cost of development method;

(e) Allocation method, if the properties are
substantially similar; and

(f) Regression analysis.

2. The use of sales of comparable improved
properties pursuant to subsection 1 is subject to the provisions of NAC 361.11795 or 361.118,
as applicable, NAC 361.1182 to 361.1188, inclusive, and the following:

(a) Sales of comparable improved properties must be
adjusted to remove the full contributory value of all items attributable to the
improvements, including, without limitation, direct and indirect costs, soft
costs, entrepreneurial profit, and personal property and other nonrealty
components of value. The costs may be reported in a lump-sum basis per unit.

(b) The complete obsolescence of an improvement for
purposes of analyzing the sales price of a comparable improved property is best
determined when the improvement is demolished or removed, but may be considered
when:

(1) Sufficient evidence demonstrates an
intention to demolish or remove the improvement, which evidence may include,
without limitation, evidence that:

(I) A permit has been issued for the
demolition of the improvement;

(II) A disclosure concerning the
demolition or removal of the improvement has been filed with the Securities and
Exchange Commission;

(III) An order has been issued for the
condemnation of the improvement; or

(IV) Construction and development
financing has been obtained with respect to the comparable property which
establishes that the demolition or removal of the improvement is intended; and

(2) No occupancy or no use is established
before the completion of the demolition or removal of the improvement.

(c) Sales of comparable improved properties may be
used in determining valuation regardless of whether the complete obsolescence
of an improvement may be determined or considered pursuant to paragraph (b).

NAC 361.1192Land: General requirements for use of alternative methods. (NRS 360.090,
360.250, 361.227)If a county assessor uses
any of the methods described in subsection 1 of NAC
361.119 to derive the value of land, the county assessor must:

1. Examine and evaluate:

(a) The reliability and accuracy of the method
used;

(b) The characteristics of the subject property;

(c) The sufficiency and quantity of the data used
to derive the value;

(d) The reliability and accuracy of the data used
and any pertinent adjustments made to comparable property;

(e) The relative validity of each comparable sale
used;

(f) The number and magnitude of any adjustments
made to comparable property or the reasons why no adjustments were made; and

(g) The relative importance of individual elements
of comparison; and

2. Determine whether:

(a) The derived value is accurate for the type of
property being valued; or

(b) Another method must be used or additional data
must be obtained to derive the value accurately.

1. Perform that method in accordance with
the provisions of chapter 7 of Property Appraisal and Assessment
Administration, as adopted by reference in NAC
361.1177.

2. Apply accrued depreciation, in accordance
with the provisions of NAC 361.1225, when
calculating the full contributory value of the improvements to be subtracted
from the sale price of the improved parcel to derive the residual land value.

3. Analyze the residual land values obtained
in the same manner as sales of vacant land to establish comparative unit or
base lot values.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1196Land: Land residual technique. (NRS 360.090, 360.250, 361.227)When using the land
residual technique, a county assessor must perform that technique in accordance
with the provisions of chapter 12 of Property Appraisal and Assessment
Administration, as adopted by reference in NAC 361.1177.

1. A county assessor may use the
capitalization of ground rents to derive the value of land only when there is
sufficient information regarding land rentals or leases which are independent
of improvements, such as, without limitation, a rental of farmland or
commercial land which is leased on a net basis where the lessee is responsible
for property taxes and all other expenses.

2. When using the capitalization of ground
rents to derive the value of land:

(a) A county assessor must perform that method in
accordance with the provisions of chapter 7 of Property Appraisal and
Assessment Administration, as adopted by reference in NAC 361.1177.

(b) If a lease:

(1) Has been recently negotiated or is still
representative of current market rents, a county assessor may directly
capitalize the net rent into an indicated land value; or

(2) Is outdated or no longer representative of
current market rents, a county assessor must reject the lease or adjust the
lease to current market conditions using verifiable market data.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1202Land: Cost of development method. (NRS 360.090,
360.250, 361.227)When using the cost of
development method, a county assessor must:

1. Perform that method in accordance with
the provisions of chapter 7 of Property Appraisal and Assessment
Administration, as adopted by reference in NAC
361.1177.

2. Deduct the following costs from an
estimate of the probable proceeds to be obtained from selling the land as
developed parcels:

1. Base that analysis on the principle of
contribution to value, pursuant to which the major characteristics of a site
and any improvements must be analyzed to determine how much each component
characteristic contributes to value.

2. Apply that analysis in accordance with
the requirements of NAC 361.1216.

1. Obtain, in accordance with the provisions
of section 3 of the Standard on Mass Appraisal of Real Property, as
adopted by reference in NAC 361.1177, a sufficient
amount of data regarding the characteristics of property to determine the
appropriate classification and valuation of property in the county.

NAC 361.1212Use of appropriate units of comparison. (NRS 360.090,
360.250, 361.227)When comparing sales of
properties for the purpose of property valuation, a county assessor must use
units of comparison which conform to the basis upon which those properties are
analyzed and sold in the market.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1214Consideration of influence of on-site and off-site enhancements. (NRS 360.090,
360.250, 361.227)Since on-site enhancements
and off-site enhancements may affect the uses to which a parcel of land is
being or may lawfully be put, a county assessor shall consider the influence of
on-site enhancements and off-site enhancements when determining the value of the
land.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1216Development of mass appraisal model to explain or predict market
value from real estate data. (NRS 360.090, 360.250, 361.227)When developing a mass
appraisal model to explain or predict the market value of properties from real
estate data, a county assessor must build and calibrate the model in accordance
with the provisions of chapters 14 and 15 of Property Appraisal and
Assessment Administration and the provisions of the Standard on
Automated Valuation Models (AVMs), as adopted by reference in NAC 361.1177.

(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)

NAC 361.1218Determination of whether sufficient sales of comparable
properties are available. (NRS 360.090, 360.250, 361.227)For the purposes of
carrying out the provisions of NAC 361.106 to 361.1315, inclusive, a county assessor must determine
whether sufficient sales of comparable properties are available based upon:

1. The nature and complexity of the subject
property to which the sales are being compared;

2. The degree of homogeneity of elements of
comparison between the subject property and the comparable properties;

3. Market conditions; and

4. The reliability of the information
regarding each sale from which a credible conclusion may be obtained.

(a) Consistent with the zoning of the land or with
the general use of land in the surrounding area, the value of the improved land
must be established by using comparable sales from a stratum with similar
zoning and location in accordance with NAC 361.11795
or 361.118 or, if appropriate, NAC 361.119; or

(b) Not consistent with the zoning of the land or
with the general use of land in the surrounding area, the value of the improved
land must be established, in accordance with NAC
361.11795 or 361.118 or, if appropriate, NAC 361.119, by using comparable sales from a stratum
that:

(1) Is most comparable to the improved land;

(2) Has the same or a similar use; and

(3) Is affected by the same or similar
restrictions.

2. The area of land to be valued according
to the use of the improvements is the area actually covered by each
improvement, plus the surrounding area necessary to support the use of the
improvement, as determined in accordance with any zoning restrictions and other
legally enforceable restrictions on the current use of the land. Any excess or
surplus land must be valued as if vacant in accordance with NAC 361.11795 or 361.118
or, if appropriate, NAC 361.119.

3. As used in this section:

(a) “Excess land” means land that is not currently
needed to serve or support an existing improvement, and which has the potential
to be sold separately from any land that is needed to serve or support an
existing improvement.

(b) “Surplus land” means land that is not currently
needed to serve or support an existing improvement, but which does not have an
independent use separate from an existing improvement and does not have the
potential to be sold separately from any land that is needed to serve or
support an existing improvement.

(a) The value of improvements using the abstraction
method pursuant to NAC 361.1194 or paragraph (d)
of subsection 1 of NAC 361.1204; and

(b) The contributory value of improvements pursuant
to paragraph (b) of subsection 5 of NRS
361.227.

2. Shall calculate accrued depreciation by:

(a) The market extraction method;

(b) The economic age-life method; or

(c) The observed condition breakdown method,

Ê in accordance
with the provisions of chapter 8 of Property Appraisal and Assessment
Administration, as adopted by reference in NAC
361.1177. When calculating accrued depreciation by the economic age-life
method, a county assessor may use the life-expectancy tables provided in the
most recent version of the Residential Cost Handbook, Marshall
Valuation Service, Residential Estimator software or Commercial
Estimator software, as appropriate, adopted by reference in NAC 361.1177.

3. Shall not apply accrued depreciation when
determining the taxable value of any improvements pursuant to subsection 1 of NRS 361.227.

(a) Land on which the release of a hazardous
substance has been verified pursuant to NAC 361.1232;
or

(b) An improvement for which permeation or
incorporation into construction by a hazardous substance has been verified
pursuant to NAC 361.1232,

Ê on or before
the assessment date of the property.

2. “Cost-to-cure” means the present value of
the remedial work to be performed to remove, contain or treat a hazardous
substance on the property being valued. The term includes the cost of continued
monitoring of the site after the remedial work has been completed if such
monitoring is required.

3. “Hazardous substance” means a hazardous
material or hazardous waste as those terms are defined in NRS 459.428 and 459.430, respectively.

1. The burden of proving that property has
been contaminated and documenting the proof of contamination to support a possible
reduction of the assessed value of the property lies with the owner of the
property.

2. To verify the release of a hazardous
substance on land or the permeation or incorporation into the construction of
an improvement by a hazardous substance, the owner of the property must:

(a) Submit reliable, objective information, such as
an engineering study, environmental audit, laboratory report or historical
record, which proves to the satisfaction of the assessor that a hazardous
substance has been released on the land or has permeated or been incorporated
into the construction of an improvement;

(b) Show that the release, permeation or
incorporation was reported to an appropriate governmental agency such as the
National Response Center or the State Department of Conservation and Natural
Resources; and

(c) Provide sufficient data to the assessor to
indicate the status of a proposed or ongoing cleanup plan.

3. To document the proof of contamination to
support a possible reduction of the assessed value of the property, the owner
of the property must submit to the assessor:

(a) A list of available comparable sales of
similarly contaminated property, if any;

(b) Any pertinent information concerning the
cleanup of the hazardous substance; and

(c) Where there is an existing business operating
on the contaminated site, records of income and expense necessary to allow the
assessor to estimate the value of the real property, as if uncontaminated, by
the income approach.

(Added to NAC by Tax Comm’n, eff. 7-16-92)

NAC 361.1234Contaminated property: Determination of full cash value. (NRS 360.090,
360.250, 361.227)In determining, pursuant
to NRS 361.227, the full cash
value of property that has been determined by the assessor to be a contaminated
site:

1. The sales comparison approach may be used
by comparing verified sales of similarly contaminated sites;

2. Where applicable, the income approach may
be used by utilizing rent, vacancy and expense data derived from a survey of
similarly contaminated sites with similarly used improvements; or

3. Where no sales or rental market exists
for similarly contaminated properties:

(a) The value of the property for a specific use,
or a specific user, reflecting the extent to which the property contributes to
the utility or profitability of the enterprise of which it is a part may be
determined by using the income approach, except that the value so determined
must not exceed the full cash value of the property; or

(b) The present worth of the contaminated site may
be determined by:

(1) Discounting the present worth of the
property if it was contaminated by an off-site source or the cost-to-cure is
not being borne by the current owner, or both, on the basis of the length of
the delay caused by the contamination until the property can be developed to
its highest and best use, readily sold or financed on the open market; or

(2) Using the present cash equivalency which
represents the future reversionary value of the contaminated site after it is
cleaned up to an extent that it is usable or developable to its highest and
best use less the present worth of the yearly costs-to-cure if the current
owner is incurring the remedial costs and an accurate forecast of the
year-to-year costs to be incurred and the estimated date of the completion of
the cleanup are available.

(Added to NAC by Tax Comm’n, eff. 7-16-92; A by R031-03,
8-4-2004)

NAC 361.1236Contaminated property: Annual review. (NRS 360.090,
360.250, 361.227)The assessor shall review
annually the assessment of any property which has been valued as a contaminated
site pursuant to NAC 361.123, 361.1232 and 361.1234 to
ensure that the remedial work, if any, is being performed as scheduled and to
verify the actual yearly cost-to-cure.

(Added to NAC by Tax Comm’n, eff. 7-16-92)

NAC 361.124Determination of actual age of improvement or newly constructed
addition to improvement. (NRS 360.090, 360.250, 361.227, 361.229)In determining the actual
age of:

1. An improvement or newly constructed
addition to an existing improvement, the county assessor shall use the actual
year of construction, if it is available, or else an estimated year of
construction.

2. An improvement that has been constructed
over a period of years, the county assessor shall use the weighted average age of
the improvement.

1. In determining the initial taxable value
of an improvement, the rate of depreciation is set forth in NRS 361.227.

2. If obsolescence, deterioration or wear
and tear causes the taxable value calculated pursuant to subsection 1 to exceed
the full cash value of the improvements, the additional depreciation and
obsolescence may be calculated separately.

1. If the use or quality of an existing
improvement is changed by a replacement, the county assessor shall revalue the
improvement according to the new use or quality as of the time the replacement
occurs.

2. Each county assessor who determines the
percentage of the replacement made to an improvement:

(a) May use the “Percentage Breakdown of Base Cost”
published in the version of the Marshall Valuation Service adopted by
reference pursuant to NAC 361.1177 as of January 1
of the year immediately preceding the lien date for the current year.

(b) Must consider the total replacements made to an
improvement which have been accumulated since its construction or the last
computation of replacement if one has been made.

3. As used in this section, the term
“replacement” includes items of remodeling or renovation which extend the
useful life of an improvement, other than those items excluded by the
provisions of NRS 361.229.

(a) Without including any costs attributable to
land enhancements; and

(b) Except as otherwise provided in subsections 2,
3 and 4, using:

(1) The standards and modifiers of local costs
published in the version of the Residential Cost Handbook, Marshall
Valuation Service, Residential Estimator software or Commercial
Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately
preceding the lien date for the current year; or

(2) With the prior approval of the Executive
Director, other computer programs for determining cost which are based on costs
published by Marshall & Swift.

2. Except as otherwise provided in
subsections 3 and 4, the cost of replacement of a farm building, a shed or
another rustic structure must be calculated using the manual of rural building
costs adopted by the Commission if the farm building, shed or other rustic
structure:

(a) Does not conform to any applicable building
code adopted by a local governmental entity; or

(b) Is constructed by a person who does not
regularly perform construction work and does not earn a substantial portion of
his or her income as a licensed contractor, unless the person acts only as a
general contractor and the actual work is performed by a person who regularly
performs construction work and earns a substantial portion of his or her income
as a licensed contractor.

3. Except as otherwise provided in
subsection 4, the cost of replacement of a farm building, a shed or another
rustic structure constructed by a person who regularly performs construction
work and earns a substantial portion of his or her income as a licensed
contractor must be calculated using:

(a) The standards and modifiers of local costs
published in the version of the Residential Cost Handbook, Marshall
Valuation Service, Residential Estimator software or Commercial
Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately
preceding the lien date for the current year; or

(b) The manual of rural building costs adopted by
the Commission, except that the costs therein must be adjusted upward by 33
percent.

4. If no publication or manual required to
be used pursuant to the provisions of this section applies to improvements of a
particular occupancy or construction type, the county assessor may apply to the
Executive Director for permission to use alternative recognized cost manuals,
cost determinations or subscription services. If the Executive Director finds
that no publication or manual required to be used pursuant to the provisions of
this section applies to such improvements and that the alternative recognized
cost manuals, cost determinations or subscription services are suitable, the
Executive Director shall, within 30 days after receiving an application
pursuant to this subsection, approve the use of the alternative recognized cost
manuals, cost determinations or subscription services and notify each county
assessor of that approval. The Executive Director shall submit to the
Commission annually a list of the alternative recognized cost manuals, cost
determinations and subscription services that the Executive Director has
approved for use.

1. A county assessor shall determine the
taxable value of any land and improvements which comprise the community units
and common elements of a common-interest community as provided in NAC 361.106 to 361.1315,
inclusive.

2. When determining the taxable value of a
community unit, a county assessor must, in addition to any other adjustments,
adjust the sales prices of, or the base lot or comparative unit values derived
from, properties which are comparable to the community unit as necessary, based
upon verifiable market data, to reflect the unique physical characteristics of
the common-interest community and the characteristics of ownership of the
community unit, including, without limitation:

(a) The relative location of the community unit
within the common-interest community, including, without limitation, the floor
level;

(b) The phase of development of the common-interest
community within which the community unit is located; and

(c) The nature of and access to the common elements
of the common-interest community, including, without limitation, any parking
facilities and open-space areas.

3. As used in this section, the words and
terms defined in NRS 361.233
have the meanings ascribed to them in that section.

(a) It is one of a group of 10 or more contiguous
parcels held under common ownership;

(b) A final map, a series of final maps or one or
more subdivision maps covering the area containing the parcel has been
presented to the county recorder for filing in the manner provided by NRS 278.360 to 278.460, inclusive, or the parcel
is assessable property in an improvement district created pursuant to chapter 271 of NRS;

(c) The owner of the parcel provides the county
assessor with whatever information the assessor deems necessary to determine
the taxable value of the parcel; and

(d) The county assessor determines that the group
of parcels affected has an expected absorption period of more than 1 year.

2. For the purposes of this section:

(a) The owner of a parcel is the person or entity
shown as such in the records of the county recorder.

(b) A parcel is contiguous with other parcels held
under common ownership even if it is separated from those parcels:

(1) By an easement, right-of-way, street,
highway or other obstruction; or

(2) By one or more parcels held by third
persons, if the parcels so held are in the same phase or section of a
development.

(c) A parcel is not contiguous with other parcels
held under common ownership, though they share a common boundary, if they are
in different phases or sections of a development.

1. In determining the taxable value of land
within a qualified subdivision, the county assessor shall use, as he or she
deems appropriate based upon the available information concerning the
subdivision:

(a) The full cash value of the subdivision as
vacant land, plus all actual costs of site preparation, including on-site
enhancements and off-site enhancements;

(b) The selling price of any comparable subdivision
or group of parcels, adjusting that price as appropriate to reflect differences
between the land sold and the land being appraised; or

(c) The estimated retail selling price of all
parcels in the subdivision which are not sold, rented or occupied, reduced by
the percentage specified for the expected absorption period of the parcels:

Expected
Absorption Period

Percentage
of Reduction

(Years)

1
- 3.........................................

20

4
- 6.........................................

30

7
- 9.........................................

40

10
or more...............................

50

2. The taxable value determined as provided
in subsection 1 must be allocated to each parcel in the subdivision which is
not sold, rented or occupied according to the size and other characteristics of
that parcel.

3. The taxable value of any improvements
made within a qualified subdivision must be determined as provided by NRS 361.227.

1. The taxable value of a mobile home or
manufactured home which constitutes real property is the cost of replacement of
the mobile home or manufactured home less depreciation and obsolescence.

2. In determining the taxable value of a
mobile home or manufactured home which constitutes personal property, each
county assessor shall, if the mobile home or manufactured home was sold as new:

(a) Before July 1, 1982, value it at its retail
selling price when sold to the original owner less depreciation at 5 percent
per year, to a maximum depreciated value of 20 percent of its original retail
selling price.

(b) On or after July 1, 1982, value it at
replacement cost, when new, less depreciation. Replacement cost when new is the
retail selling price to the original owner adjusted by factors reflected in the
annual Personal Property Manual.

Ê Depreciation
must be calculated pursuant to the schedule located in the annual Personal
Property Manual. Additional depreciation and obsolescence may be calculated
separately.

3. The retail selling price of a mobile home
or manufactured home includes all charges for transportation, installation,
accessories, profit and overhead.

4. If the owner of a mobile home or
manufactured home which has been converted to real property wishes to convert
the mobile home or manufactured home back to personal property, the county
assessor shall provide the owner with a form for an affidavit of conversion
which has been approved by the Commission and which must be recorded in the
county recorder’s office pursuant to NRS
361.2445 before the mobile home or manufactured home may be removed from
the tax rolls. The affidavit of conversion may include information concerning
the cost of acquisition of the mobile home or manufactured home. All signatures
required pursuant to NRS 361.2445
to effectuate the conversion must be notarized.

5. The county assessor shall value the
mobile home or manufactured home as personal property upon satisfaction of all
the requirements set forth in NRS
361.2445 if the mobile home or manufactured home remains within the jurisdiction
of the county assessor.

6. If a mobile home or manufactured home
which has been converted to real property is completely destroyed and removed
from real property, the county assessor shall remove the mobile home or
manufactured home from the tax roll.

1. The taxable value of a billboard is the
cost of replacement of the billboard less depreciation and obsolescence.

2. The cost of replacement of a billboard
must be computed by multiplying the cost of acquisition to the current owner by
the appropriate factor located in the annual Personal Property Manual.
The factor that corresponds to the year the billboard was acquired must be
used. Additional depreciation and obsolescence may be calculated separately.

(Added to NAC by Tax Comm’n, eff. 8-2-90; A by R031-03,
8-4-2004)

NAC 361.131Taxable value exceeding full cash value. (NRS 360.090,
360.250, 361.227)If the initially
determined taxable value for any real property is found to exceed the full cash
value of the property, the person determining taxable value shall examine the
taxable value determined for the land, and if the land is properly valued, he
or she shall appropriately reduce the taxable values determined for the
improvements and, if appropriate, the value of the land and any pertinent
personal property.

1. To determine if a school district is
eligible to receive an adjustment in apportionment pursuant to subsection 2 of NRS 387.1243, each county assessor
shall, on or before March 15 of each year, submit a report to the Department on
a form provided by the Department. The report must include the:

(a) Value of all possessory interest of property in
the county that is subject to taxation pursuant to NRS 361.157 and 361.159;

(b) Value of such property for the current fiscal
year;

(c) Amount of taxes that are due on the property;
and

(d) Amount of taxes that have been paid for the
current fiscal year.

Ê A copy of the
report must be provided to the county treasurer.

2. After receipt of the report required by
subsection 1, the Department will verify, in cooperation with the county
treasurer, the amount of property taxes paid and the amount of anticipated
shortfall in property taxes on any leasehold interest, possessory interest,
beneficial interest or beneficial use on property that is owned by the Federal
Government and subject to taxation pursuant to NRS 361.157 and 361.159. On or before April 15 of
the year in which the taxes are due, the Department will provide certification
of the amount of such anticipated shortfall to the Department of education.

3. If the delinquent taxes are paid after
the report required by subsection 1 is made, the county treasurer shall report
the date and amount of payment to the Department within 10 days after the
payment is made. The Department will report the amount of the payment to the
Department of Education to facilitate repayment by the school district in
accordance with subsection 2 of NRS
387.1243.

(a) Determine the taxable value of each community
unit of a common-interest community separately and assess the tax thereon to
the current owner of the community unit; and

(b) Determine the taxable value of the common
elements of a common-interest community separately and assess the tax thereon
to the current owners of the community units of the common-interest community
as provided in NAC 361.1336.

2. If a parcel includes both a community
unit and any portion of the common elements of a common-interest community, a
county assessor shall:

(a) Determine the taxable value of any improvements
and land that comprise that community unit separately and assess the tax
thereon to the current owner of the community unit; and

(b) Determine the taxable value of any improvements
and land that comprise that portion of the common elements of the
common-interest community and assess the tax thereon to the current owners of
the community units of the common-interest community as provided in NAC 361.1336.

3. For the purposes of:

(a) Paragraph (a) of subsection 1, the taxable
value of the common elements of a common-interest community must not enhance or
be reflected in the taxable value of a community unit of that common-interest
community; and

(b) Paragraph (a) of subsection 2, the taxable value
of any improvements and land that comprise the common elements of a
common-interest community must not enhance or be reflected in the taxable value
of any improvements and land that comprise a community unit of that
common-interest community.

1. Except as otherwise provided in
subsection 3 of NAC 361.1334, a county assessor
shall include in the valuation of each community unit of a common interest
community an amount calculated by multiplying the taxable value of all the
common elements of the common-interest community by a fraction, the numerator
of which is 1 and the denominator of which is:

(a) Except as otherwise provided in paragraph (b),
the total number of community units in the common-interest community; or

(b) If the common-interest community is still under
development, the total number of community units planned to be constructed in
the common-interest community,

Ê regardless of
whether each community unit has yet been identified by a separate assessor’s
parcel number.

2. If a county assessor is unable to
determine from public records the information necessary to carry out the
provisions of subsection 1, the county assessor shall submit to the owners of
the common elements of the common-interest community a written request for such
information as the county assessor determines to be necessary to carry out
those provisions. Such information may include, without limitation:

(a) The total number of community units constructed
or planned to be constructed in the common-interest community;

(b) The assessor’s parcel number or other
identifying information for each community unit in the common-interest
community; and

(c) The assessor’s parcel number or other
identifying information for each portion of the common elements of the
common-interest community.

3. If the owners of the common elements of a
common-interest community fail to provide the information requested pursuant to
subsection 2 within 60 days after receiving that request, the county assessor
shall allocate the taxable value of the common elements of the common-interest
community to the community units of the common-interest community based on any
information available to the county assessor.

4. The Department shall provide a standard
form for requesting and providing information pursuant to this section.

NAC 361.1351“Acquisition cost” and “original cost” defined. (NRS 360.090,
360.250, 361.227)“Acquisition cost” or
“original cost” means the actual cost of property to its present owner,
including, without limitation, the costs of transportation and the costs of
installation.

(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

NAC 361.1355“Costs of installation” defined. (NRS 360.090, 360.250, 361.227)“Costs of installation”
means the costs of direct labor, direct overhead and the capitalized expense of
interest or imputed charges for interest which are necessary to make the
property operational.

(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

NAC 361.1361“Personal Property Manual” defined. (NRS 360.090,
360.250, 361.227)“Personal Property
Manual” means a manual for the valuation of personal property that is
published by the Department annually pursuant to NAC
361.1365.

1. The Department will annually publish a Personal
Property Manual which describes the methods and standards that must be used
for the valuation of personal property. The manual must include, without
limitation, annually updated:

(a) Cost-index factors that must be used in the
conversion of acquisition cost into an estimate of replacement cost new;

(b) Expected-life schedules that indicate the
category of expected life for each type of property or type of industry in
which the property is used; and

(c) Percent-good tables which indicate the rate of
depreciation that must be applied.

2. The Personal Property Manual must
be approved by the Commission before publication. The Department, at least 1
month before presenting the manual to the Commission for approval, must
disclose all proposed modifications to the manual and hold a public workshop on
the modifications.

3. Each county assessor shall use the Personal
Property Manual in determining the taxable value of personal property.

1. The taxable value of personal property
must be determined by adjusting the acquisition cost of the property by a
cost-index factor and reducing the adjusted acquisition cost by an estimate of
applicable depreciation. The taxable value so determined shall be deemed to be
the indicator of value of replacement cost new less depreciation.

2. In determining taxable value, a county
assessor shall use the schedules in the Personal Property Manual that
show the cost-index factors, the rates of depreciation and the percent good by
year. The assessor shall use the schedules by:

(a) Selecting the appropriate expected useful life
of the personal property; and

(b) Selecting the appropriate cost-index factor,
based on the year of acquisition of the property, and applying it to the
acquisition cost of the property.

Ê The result
shall be deemed to be the replacement cost new of the property.

3. The assessor shall select the method of
applying depreciation to the personal property by either:

(a) Multiplying the adjusted acquisition cost of
the property by the rate of depreciation and subtracting the result from the
adjusted acquisition cost; or

(b) Multiplying the adjusted acquisition cost of
the property by the percent-good factor.

Ê The result
from either approach shall be deemed to be the taxable value of the property.

1. Personal property must be categorized by
the specific type of property that it is or by the type of industry in which it
is used. Each category must be assigned to a schedule of expected life which is
based on commonly available sources of information, including, without
limitation, the life expectancy guidelines published by the Marshall and Swift
Valuation Service and any other sources published in the Personal Property
Manual.

2. The cost-index factors published in the Personal
Property Manual must be determined by calculating the average change in
costs over time. The Department shall identify the sources used to calculate
the average change.

3. For purposes of calculating the amount of
applicable depreciation, personal property must be assigned to one of the
following expected lives:

(a) Three-year life;

(b) Five-year life;

(c) Seven-year life;

(d) Ten-year life;

(e) Fifteen-year life;

(f) Twenty-year life; or

(g) Thirty-year life.

4. Depreciation must be calculated over the
expected life of the personal property by using the declining balance method,
except that tables which provide a method other than the declining balance
method for calculating depreciation may be used if the tables have been
approved by the Commission and included in the Personal Property Manual.

5. For purposes of calculating the rate of
depreciation, a residual amount of 5 percent must be used. Percent-good tables
using a residual amount other than 5 percent may be adopted by the Commission
if the Department has conducted a market study or has otherwise obtained
information which indicates that a different residual amount is appropriate for
the category in which the personal property is placed pursuant to subsection 1.

(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

NAC 361.138Reported acquisition cost for leased equipment. (NRS 360.090,
360.250, 361.227)For leased equipment, the
reported acquisition cost is the cost which the user of the property would
incur if the equipment were purchased, less any discount customarily allowed by
a seller.

1. In determining the taxable value of
personal property which was acquired with real property for a lump sum, the
assessor may refer to appropriate guides which list the cost of equipment to
determine the value of the personal property in relation to the value of the
real property. In addition, the assessor may estimate the age of the equipment
by inspecting it or discussing the approximate value of the equipment with
manufacturers, dealers or other persons in the business who have knowledge of
the value of the equipment. The serial number, if it exists, may enable a
manufacturer to determine the date of manufacture and the original cost.

2. If sufficient data is not otherwise
available to establish acquisition cost, or if the assessor determines that a
reported acquisition cost is not equal to the fair market value of the property
at the time of acquisition plus any costs of transportation and costs of
installation, the assessor may use any nationally recognized valuation
technique to determine the acquisition cost, including, without limitation:

(a) Establishing the current cost of replacement of
the property with new property by reference to current manufacturing costs. If
the current cost of replacement is known, the assessor shall apply depreciation
to that cost to determine the taxable value.

(b) Using a guide which lists the cost or a
procedure recognized by businesses which use such equipment to determine the
taxable value. Before such a guide or procedure may be used, an assessor must
receive approval from the Executive Director.

(c) Using information based on current market data.

3. Upon request, the Division of Local Government
Services of the Department will provide information on various guides which may
be used to determine original cost.

(a) Establish geographic boundaries for areas of
appraisal or establish areas by other classifications within which all property
must be reappraised at the same time; and

(b) Establish not later than July 1 of the year
immediately preceding the assessment year, the standards of valuation,
including data on comparable sales, to be used throughout the year’s cycle of
reappraisal.

2. These areas of appraisal may be changed
to alleviate problems created by growth or other circumstances if the county
assessor shows good cause and receives the approval of the Commission.

NAC 361.146Records of reappraisals. (NRS 360.090, 360.250, 361.260)Whenever property is reappraised,
the county assessor shall indicate all the data necessary to determine the
taxable value of the property, the date of the field inspection, if any, and
the identity of the appraiser. The actual age and the depreciation of the
existing improvements and any additions to those improvements must be clearly
indicated.

NAC 361.150Report of appraisals by county assessor. (NRS 360.090,
360.250, 361.260)Each county assessor shall
file with the Department on or before April 1 of each year a report which
includes:

1. A statement of the appraisals
accomplished in the previous year beginning January 1 and ending December 15,
including:

(a) The total number of parcels that were
reappraised;

(b) The total number of parcels with newly
constructed improvements to realty, not including additions to existing
improvements and newly subdivided parcels that were appraised;

(c) The total number of all taxable parcels in the
county; and

(d) The areas of the county that were reappraised.

2. A statement of what the county assessor
proposes to appraise in the following year, including:

(a) An estimate of the percentage of all parcels in
the county that the proposed reappraisals represent; and

(b) The areas of the county that the county
assessor proposes to reappraise.

3. A list of the areas of appraisal,
encompassing all property in the county, which were used in the prior 5-year
cycle of reappraisal and a statement of the areas which were appraised in each
year of that cycle.

NAC 361.151Statement of valuation of property sold. (NRS 360.090,
360.250, 361.260)On or before April 1 of
each year, each county assessor shall furnish to the Department a statement of
the valuation of real property which was sold in his or her county in the
preceding calendar year. The statement must include:

(c) The year of the last reappraisal of each
property at which time the taxable value of the property was determined; and

(d) The assessed value of the land, improvements
and personal property, separately stated.

2. The county assessor shall submit a copy
of the assessment list to the Department immediately following publication or
delivery to taxpayers pursuant to subsection 3 of NRS 361.300.

3. For the purposes of paragraph (a) of
subsection 3 of NRS 361.300, the
Commission will interpret the term “each taxpayer in the county” as used in
that paragraph to mean each taxpayer who resides in the county. A county
assessor who causes a copy of the assessment list to be delivered to each
taxpayer who resides in the county shall cause a copy of the assessment list to
be delivered to any other taxpayer who owns property in the county if that
taxpayer requests a copy of the assessment list.

NAC 361.202“Accelerated amortization” defined. (NRS 360.090,
361.320)“Accelerated
amortization” means the accruing of greater depreciation expense for income tax
purposes in the early years of the property’s life and less in the later years.

NAC 361.204“Accelerated depreciation” defined. (NRS 360.090,
361.320)“Accelerated
depreciation” means the accruing of greater depreciation expense in the early
years of a property’s life and less in the later years. Two methods of
accelerated depreciation are the:

1. Sum of the year’s digits method; and

2. Declining balance method.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.206“Accrual accounting” defined. (NRS 360.090, 361.320)“Accrual accounting” means
recording the revenues and expenses based on amounts due or owing during the
report period whether received, paid or not.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.208“Accrued depreciation” defined. (NRS 360.090, 361.320)“Accrued depreciation”
means the amount of depreciation to date; when recorded as a dollar amount it
may be deductible from the total plant value or investment to arrive at the
rate base.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.210“Advance payments for gas” defined. (NRS 360.090,
361.320)“Advance
payments for gas” means cash payments made to producers to finance exploration
for gas. If any gas is discovered, the company making the advance payment has
the right to bid on or buy all or part of the discovered gas. Repayment of the
advance is taken in the form of delivered gas.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.212“Allocation to states” defined. (NRS 360.090, 361.320)“Allocation to states”
means the process of assigning a portion of a unit value or system statistic to
a state.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.214“Allowance for funds used during construction” defined. (NRS 360.090,
361.320)“Allowance
for funds used during construction” means the process of capitalizing interest
expense on funds used during the construction period. As property does not
generate earnings during construction, the capitalized interest expense
represents imputed earnings. The capitalized interest becomes part of the total
cost of the project.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.216“Amortization” defined. (NRS 360.090, 361.320)“Amortization” means the
orderly writing off of an investment by making periodic charges against current
income or the orderly retirement of an obligation by making periodic payments
to the creditor.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.218“Annuity” defined. (NRS 360.090, 361.320)“Annuity” means a series
of payments to be made at equal intervals, annual, monthly or other. The
payments themselves do not have to be equal. An annuity whose payments are
equal is known as a level annuity.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.220“Antipollution controls” defined. (NRS 360.090,
361.320)“Antipollution
controls” means regulations or standards set up under federal and state laws to
correct abuses leading to the contamination of clean air and water supplies by
smoke, smog, fumes, hazardous radiation and other emissions including those
from nuclear or other electric generating plants.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.222“Apportionment to intrastate jurisdiction” defined. (NRS 360.090,
361.320)“Apportionment
to intrastate jurisdiction” means the process of assigning a portion of a state
value or state statistic or company statistic to geographical areas, usually
tax levying districts or codes within the State.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.224“Assessment ratio” defined. (NRS 360.090, 361.320)“Assessment ratio” means
the relationship of assessed value to market value or to some statutory value
such as actual value or true cash value.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.226“Band-of-investment” defined. (NRS 360.090, 361.320)“Band-of-investment” means
a method used to compute a capitalization rate in the absence of market
information. The simplest form of band-of-investment computation requires
estimating the appropriate ratio of debt to equity, the interest cost of debt
and, typically the most subjective element, the rate of return on equity
capital. The weighted rates on debt and equity are added to obtain the
band-of-investment rate.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.228“Bond discount” defined. (NRS 360.090, 361.320)“Bond discount” means an
amount in dollars subtracted from the face value of a bond because the market
discount rate is greater than the coupon rate.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.230“Bond premium” defined. (NRS 360.090, 361.320)“Bond premium” means an
amount in dollars added to the face value of the bond because of issuing costs
or a market discount rate less than the coupon rate.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.232“Bond rating” defined. (NRS 360.090, 361.320)“Bond rating” means a
classification assigned by financial reporting institutions reflecting relative
standings as to risk. The classification may include consideration of
management, revenue prospects, regulatory climate, operating costs and many
other aspects of business operations.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.234“Book depreciation” defined. (NRS 360.090, 361.320)“Book depreciation” means
the total accruals recorded on the books of the owner of property summarizing
the systematic and periodic expenses charged toward amortizing the investment
of limited-life property over its expected life.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.236“Book value,” “net book” defined. (NRS 360.090,
361.320)“Book
value” or “net book” means the cost of a property as carried in the accounting
records of the owner less the accrued depreciation reserve for that property.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.238“Capital structure” defined. (NRS 360.090, 361.320)“Capital structure” means
the manner in which an organization is financed, that is, the amount and kind
of equity and debt that satisfies the need for money.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.240“Capitalization process” defined. (NRS 360.090,
361.320)“Capitalization
process” means the conversion of a stream of income having a certain duration
into value by means of a capitalization rate that recognizes the degree of risk
as between the property and the income it produces.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.242“Capitalization rate” defined. (NRS 360.090, 361.320)“Capitalization rate”
means a factor, used as a divisor, which converts an income stream into an
indicated value. If the income stream is expected to be of limited duration, a
recapture component may be included in the capitalization rate.

NAC 361.248“Cash flow,” “net cash flow” or “after-tax cash flow” defined. (NRS 360.090,
361.320)“Cash
flow,” “net cash flow” or “after-tax cash flow” means the sum of depreciation
(and depletion, if any) and net income after all expenses, all taxes and
interest on debt. Conversely, it is gross income minus operating expenses,
interest on debt, property taxes and income taxes.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.250“Cash flow, before-tax” defined. (NRS 360.090, 361.320)“Cash flow, before-tax”
means the cash flow plus income taxes. When applied to “cash flow,” the term
“before-tax” refers only to income taxes.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.252“Certificate of convenience and necessity” defined. (NRS 360.090,
361.320)“Certificate
of convenience and necessity” means a grant of authority from a state or
federal regulatory commission authorizing a company to render a public utility
service, usually specifying the area and other conditions of service.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.254“Common carrier” defined. (NRS 360.090, 361.320)“Common carrier” means a
person, corporation or entity engaged in transporting persons, goods or
messages for compensation over a regular route, on a certain schedule or at a
published rate, all of which are subject usually to government regulation.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.256“Compound interest and annuity tables” defined. (NRS 360.090,
361.320)“Compound
interest and annuity tables” means the six sets of factors or coefficients that
embrace the fundamentals of the mathematics of finance. The various factors are
here called present worth of 1, present worth of 1 per annum, future worth of
1, future worth of 1 per annum, sinking fund and mortgage repayment. The first
type of factor, present worth of 1, is derived from the formula:

1

n

______________________

(1
+ r)

Where “r” is the discount (capitalization) rate and “n” is the
number of periods. All other factors are derived from the mathematical
manipulation of this formula. Other names are sometimes given to some of the
factors such as “reversion” for present worth of 1, “Inwood” for the present
worth of 1 per annum and many names for mortgage repayment.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.258“Construction work in progress” defined. (NRS 360.090,
361.320)“Construction
work in progress” means the total of the balances of work orders for plant,
road and equipment including expenditures on research, development and
demonstration projects for construction of facilities.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 12-20-79]

NAC 361.260“Contribution in aid of construction” defined. (NRS 360.090,
361.320)“Contribution
in aid of construction” means a plant which has been contributed to a utility
by a prospective customer or which has been constructed by the utility and paid
for by the prospective customer for which no reimbursement is required to be
made by the utility to the prospective customer as a prerequisite to obtaining
service.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 12-20-79]

NAC 361.262“Debt” defined. (NRS 360.090, 361.320)“Debt” is money owed. In
the usual case, borrowed money (debt) is considered to be a permanent part of
the capital used in the business.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.264“Deferred federal income taxes” defined. (NRS 360.090,
361.320)“Deferred
federal income taxes” means the estimated income tax on the excess of net
revenues, recognized for accounting purposes, over that reported for tax
purposes.

NAC 361.266“Depreciation” defined. (NRS 360.090, 361.320)“Depreciation,” in an
appraisal sense, means the loss in value of an item due to all causes.
Sometimes it is meant to be physical deterioration, but in a strict sense it
would include functional and economic obsolescence.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.268“Discount rate” defined. (NRS 360.090, 361.320)“Discount rate” means the
annual percentage rate used to select present worth factors. The discount rate
is one form of capitalization rate. A discount rate can be derived in two ways:

1. By use of the band-of-investment method;
or

2. From sales data using the discounted cash
flow rate of return method.

Ê The discounted
cash flow rate of return method consists of finding the annual rate at which
future income must be discounted so that the total present worth equals the
proposed investment in the sale price of a property. The present worth of a
given year’s income automatically provides for recapture of capital. The
difference between the income itself and its present worth provides for the
return (yield) on the capital. The term “discount factor” is sometimes
erroneously used instead of “discount rate.” Actually, the factors used in
discounting are present worth factors.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.270“Earnings-price ratio” defined. (NRS 360.090, 361.320)“Earnings-price ratio”
means the ratio of earnings per share available to common stockholders of a
specific company for an accounting period to the market price per share of the
common stock of that company. See NAC 361.358.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.272“Economic life” defined. (NRS 360.090, 361.320)“Economic life” means the
useful life of a property in contrast to its physical life which could be
greater.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.274“Economic rent” defined. (NRS 360.090, 361.320)“Economic rent” means the
rent currently and typically found in the open market.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.276“Effective rate of interest” defined. (NRS 360.090,
361.320)“Effective
rate of interest” means the total cost to a company for borrowing money divided
by the face value of the money. The interest expense plus the cost of floating
the debt or compensatory bank balance are included in calculating the total
cost.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.278“Equity” defined. (NRS 360.090, 361.320)“Equity” means the owners’
interest in the business. In monetary terms, it is the amount of money the
owners have invested in common and preferred stock plus earnings of the
business that have not been paid out as dividends.

NAC 361.282“Fair market value” defined. (NRS 360.090, 361.320)“Fair market value” means
the highest price estimated in terms of money which a property will bring if
exposed for sale in the open market allowing a reasonable time to find a
purchaser who buys with full knowledge of all the uses to which it is adapted
and for which it is capable of being used.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.284“Fair return” defined. (NRS 360.090, 361.320)“Fair return” means an
amount of income authorized by a regulatory agency which is considered
sufficient for a utility to attract necessary additional capital while at the
same time rendering adequate service.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.285“Final reconciliation” defined. (NRS 360.090, 361.320)“Final reconciliation”
means the application of the process of evaluating alternative conclusions and
selecting from the indications of value derived from each of the approaches
used in the appraisal process to arrive at a final estimate of value.

(Added to NAC by Tax Comm’n, eff. 9-30-88)

NAC 361.286“Fixed expenses” defined. (NRS 360.090, 361.320)“Fixed expenses” means
those expenses of a business enterprise which do not vary in relation to
changes in volume of output such as interest on borrowed funds, insurance or
general overhead expenses.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.288“Flow-through accounting” defined. (NRS 360.090,
361.320)“Flow-through
accounting” means the practice of charging to the current period only those
expenses incurred during the period. A common example is the lesser income tax
expense in a given period, due to the use of accelerated depreciation methods
or guideline lives in contrast to straight-line depreciation or normal service
lives, which would benefit the consumer in the form of lower cost of service if
prescribed by the regulatory agency. See NAC 361.342.

NAC 361.296“Forms R-1 and R-2” defined. (NRS 360.090, 361.320)“Forms R-1 and R-2” means
the annual reports of business operation filed with the Surface Transportation
Board by Class I railroads (operating revenues of $5,000,000 or more) and Class
II railroads (operating revenues less than $5,000,000) respectively.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.298“Fractional appraisal” defined. (NRS 360.090, 361.320)“Fractional appraisal”
means the valuation of one or more component parts without reference to the
value of the whole enterprise. The sum of two or more fractional appraisals is
called a summation appraisal and does not always equal unit value.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.300“Full cash value” defined. (NRS 360.090, 361.320)“Full cash value” means
the amount at which the property would be appraised if taken in payment of a
just debt due from a solvent debtor.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.302“Functional depreciation” defined. (NRS 360.090,
361.320)“Functional
depreciation” means the loss of service usefulness or obsolescence due to
technological advances or social requirements.

NAC 361.306“Gross addition” defined. (NRS 360.090, 361.320)“Gross addition” means new
property added to an existing plant or an improvement in the form of a
betterment added to existing property and is usually reported in a dollar
amount.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.308“Gross income” defined; synonymous with “gross earnings.” (NRS 360.090,
361.320)“Gross
income” means the total amount of income received by a natural person before
any deductions are taken. The term is synonymous with the term “gross
earnings.”

NAC 361.310“Historical cost” defined; synonymous with “original cost.” (NRS 360.090,
361.320)“Historical
cost” means the first cost of a property item of a public utility regardless of
the present owner or interim sales transactions. It usually refers, in the
accounting of public utilities, to the cost of a property item when first
devoted to public service. For other than the accounting of public utilities,
the term means the cost to the owner at the time of acquisition. The term is
synonymous with the term “original cost” in public utility accounting.

NAC 361.312“Imbedded debt cost” defined. (NRS 360.090, 361.320)“Imbedded debt cost” means
the average rate of interest that a company pays for its long-term debt.
Basically, it is the amount of the total interest paid on long-term debt during
the year divided by the face value of the long-term debt outstanding at the end
of the year.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.314“Inch equivalent” defined. (NRS 360.090, 361.320)“Inch equivalent” means
the miles of various sizes of a pipeline converted into an equivalent mileage
of 1-inch pipeline. For example, 1 mile of 36-inch pipe is equivalent to 36
miles of 1-inch pipe.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.316“Income” defined. (NRS 360.090, 361.320)“Income” means money or
other benefits stemming from the ownership of property, generally received on a
regular monthly or annual basis. The word “income” used alone has no specific
appraisal significance, but must be modified to form terms such as gross income
and net operating income. Revenue is the preferred measure for business and
income is the preferred measure of the salaries of persons.

NAC 361.318“Income approach to value” defined. (NRS 360.090,
361.320)“Income
approach to value” means the method of appraisement that involves the analysis
of the incomes and expenses of income-producing properties and the use of the
capitalization of income to produce property value indicators.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.320“Indicator of value” defined. (NRS 360.090, 361.320)“Indicator of value” means
a conclusion of the worth, expressed in dollars, of a specifically identified
item of property (be it a single parcel of land or piece of equipment or an
extensive corporate conglomerate) based upon consideration of particular
characteristics or attributes of that property. Among the most common indicators
of value are those based upon cost, income and comparable sales.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.322“Interest rate” defined. (NRS 360.090, 361.320)“Interest rate” means a
promised, typically contractual annual percentage rate of interest paid on a
debt such as a mortgage note or a contract. Interest is the cost of borrowing
money.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.324“Interperiod allocation” defined. (NRS 360.090,
361.320)“Interperiod
allocation” means an assignment of expenses to a certain period rather than to
the period in which the expenses occurred. Income tax expense is so handled in
normalization accounting.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.326“Investment tax credit” defined. (NRS 360.090, 361.320)“Investment tax credit”
means a federal income tax incentive intended to encourage capital investment.
It is a permanent forgiveness of income tax liability through the direct reduction
of tax liability for the year in which it is utilized. The amount of tax credit
has varied, but it is a percentage of the investment in the qualified plant,
with limits for the amount of tax reduction including carry-back or
carry-forward features. The investment tax credit was repealed for property
placed in service after December 31, 1985.

NAC 361.328“Inwood factor or method” defined. (NRS 360.090,
361.320)“Inwood
factor or method” means a factor or method used to determine the present value
of future earnings. Those earnings are capitalized by using the same risk rate
for both the return on and the return of the investment.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.330“Liberalized depreciation” defined. (NRS 360.090,
361.320)“Liberalized
depreciation” means the use of rates of depreciation on property for income tax
purposes that amortizes the investment over a shorter time period than its
actual useful life. See revenue proceedings 72-10 IRS.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.332“Load factor” defined. (NRS 360.090, 361.320)“Load factor” means the
ratio of the average use, during a specified time interval, to the peak use
during the same time interval. It may be calculated on a daily, weekly, monthly
or an annual basis.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.334“Main track” defined. (NRS 360.090, 361.320)“Main track” means the
lines or routes of a railroad, whether on the main line or a branch line, as
distinguished from yard track, side track or passing track.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.336“Market value” defined. (NRS 360.090, 361.320)“Market value” means the
amount in dollars for which a specific item of property could be sold by a
willing seller and be bought by a willing buyer, assuming an arm’s length
transaction and reasonable exposure to the market.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.338“Net additions” defined. (NRS 360.090, 361.320)“Net additions” means the
gross additions less the retirements and is usually reported in amounts of
dollars.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.340“Net operating income” defined. (NRS 360.090, 361.320)“Net operating income”
means the excess of the revenues of a business enterprise over the expenses of
the enterprise, excluding the income from sources other than its regular
activities, but before the deduction of debt interest or recapture of capital.
In property tax appraisal, the net operating income is at a level that also
includes the sum to be paid for property taxes.

NAC 361.342“Normalization accounting” defined. (NRS 360.090,
361.320)“Normalization
accounting” means the practice of charging to the current period those expenses
related to the current period rather than to the period in which they are
actually incurred. A common example is the computation and assignment of income
tax expense to a period based on a straight-line depreciation method rather
than on an accelerated depreciation method actually used. The income tax
expense computation may or may not have included the additional variable of
normal lives versus allowable guideline lives. See NAC
361.288.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.344“Obsolescence” defined. (NRS 360.090, 361.320)“Obsolescence” means the
lessening of value due to causes other than physical causes and may be
functional where circumstances internal to the property item render it less
desirable or economic where circumstances external to the item and beyond the
control of the owner render the property item less desirable.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.346“Operating expenses” defined. (NRS 360.090, 361.320)“Operating expenses” means
the direct expenses incurred in conducting the ordinary major activities of an
enterprise, usually excluding nonoperating expenses and income deductions.

NAC 361.348“Operating revenue” defined; synonymous with “net revenue.” (NRS 360.090,
361.320)“Operating
revenue” means the revenue from the operations of the primary business of an
enterprise, such as the electric revenues of an electric utility, which is
gross sales of goods and services, less returns, allowances and cash discounts,
together with gross amounts received from any other regular income source. The
term is synonymous with the term “net revenue” from sales of services.

NAC 361.350“Original cost” defined. (NRS 360.090, 361.320)“Original cost” means the
cost of a property item to the present owner. At times, it is used as an
equivalent to the historical cost.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.352“Possessory interest” defined. (NRS 360.090, 361.320)“Possessory interest”
means a type of ownership or partial ownership of the total fee. In financial
terminology it is the portion of the equity in a business enterprise which is
expressed in terms of dollars invested. In valuation it is frequently
encountered where government property is rented or leased to a taxable
occupant.

NAC 361.354“Prepayments for gas” defined. (NRS 360.090, 361.320)“Prepayments for gas”
means payments made for gas which will be delivered in less than 1 year.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.356“Present worth” defined; synonymous with “present value.” (NRS 360.090,
361.320)“Present
worth” means the value today of something to be received in the future. It is
usually calculated by a discounting process that takes into consideration the
time and interest concept of the worth of the money. The term is synonymous
with the term “present value.”

NAC 361.358“Price-earnings ratio” defined. (NRS 360.090, 361.320)“Price-earnings ratio”
means the ratio of the market price per share of the common stock of a specific
company to the earnings per share of common stock of that company during a 12-month
period. Typically, the ratio is based upon the current market price and the
most recent 12-month period for which the earnings are known.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.360“Rate base” defined. (NRS 360.090, 361.320)“Rate base” means the
amount in dollars established by a regulatory agency upon which a return is
allowed.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.362“Rate of capitalization” defined. (NRS 360.090,
361.320)“Rate of
capitalization” means the ratio of income to value. Such a rate can vary widely
in quality depending upon the elements that are included such as interest,
recapture, ad valorem taxes and income taxes.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.364“Rate of performance” defined. (NRS 360.090, 361.320)“Rate of performance”
means the actual income earned compared to an investment in contrast to a rate
of return allowed or permitted but not necessarily accomplished.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.366“Rate of return” defined. (NRS 360.090, 361.320)“Rate of return” is a
general term that means:

1. The yield to an investor variously on the
investor’s net investment or on the property value; or

2. The ratio of either the net operating
income or the before-tax cash flow to either the total property value or the
initial investment or the average investment during a given period.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.368“Recapture” defined. (NRS 360.090, 361.320)“Recapture” means the
recovery of a capital investment. More specifically, it is the portion of the
net operating income or the cash flow that provides for the periodic repayment
of invested capital. Recapture may also be achieved, wholly or in part, through
the resale of the property. The words depreciation and amortization are
sometimes used as synonyms for recapture. However, depreciation is also both an
accounting term and a word that means a loss from original value and
amortization is commonly used to signify debt retirement. Recapture does not
have these multiple meanings and is more desirable for use in income appraisal.

NAC 361.370“Remaining economic life” defined. (NRS 360.090,
361.320)“Remaining
economic life” means the difference between the economic life and the present
effective age of an income producing property.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.372“Replacement cost” defined. (NRS 360.090, 361.320)“Replacement cost” means
the cost of acquiring or constructing, at current prices, a property which is
the functional equivalent of an existing property.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.374“Reproduction cost” defined. (NRS 360.090, 361.320)“Reproduction cost” means
the cost of acquiring or constructing, at current prices, a property identical
to an existing property.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.376“Reserve life” defined. (NRS 360.090, 361.320)“Reserve life” means an
estimated number of years that the gas reserves of a natural gas transmission
company will last. For example, the remaining life of a natural gas
transmission company would be the estimated number of years a company can
deliver gas at a given annual volume of gas divided by the total gas reserves.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.378“Retirement depreciation” defined. (NRS 360.090,
361.320)“Retirement
depreciation” means a method of accounting for the total depreciation expense
at the date of retirement rather than by systematic additions to a depreciation
reserve during the life of the property.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.380“Return on equity” defined. (NRS 360.090, 361.320)“Return on equity” means
the ratio of earnings on the common equity divided by the book value of the
common equity interests.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.382“Revenue” defined. (NRS 360.090, 361.320)“Revenue” means the gross
dollars received for materials furnished or services rendered. The term is
usually used in conjunction with business sales as opposed to the earnings of a
natural person.

NAC 361.384“Risk” defined. (NRS 360.090, 361.320)“Risk” means the degree of
uncertainty regarding the receipt of future income, whether in the form of
interest or of net operating income. The higher the risk, the greater the
annual percentage rate of return demanded by investors. Interest on a
government bond or on a bank deposit has a high degree of certainty of receipt
and therefore offers a low rate of return compared to other investments. At the
other extreme is the high risk equity portion of a commercial enterprise with a
high debt equity ratio.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.386“Sinking fund” defined. (NRS 360.090, 361.320)“Sinking fund” means the
fund to which periodic cash deposits are made for ultimately repaying a debt or
replacing an asset. Usually, a sinking fund receives equal periodic deposits
upon which interest is compounded at a stated rate so that the fund will
accumulate to a predetermined amount at the end of a stated period.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.387“Statistical median” defined. (NRS 360.090, 361.320)“Statistical median” means
the representative intermediate value calculated for a distribution or range of
data usually grouped in several intervals of equal value lying between the two
extreme values.

(Added to NAC by Tax Comm’n, eff. 9-30-88)

NAC 361.388“Straight-line depreciation” defined. (NRS 360.090,
361.320)“Straight-line
depreciation” means the accounting practice of recording equal annual
increments of depreciation over the estimated life of an asset. In an appraisal
it means equal annual increments of loss in value.

NAC 361.390“Summation method of valuation” defined. (NRS 360.090,
361.320)“Summation
method of valuation” means the combining of fractional valuations into one
value such as the addition of the value of a house to the value of the lot to
produce a total residential value.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.392“System” defined. (NRS 360.090, 361.320)“System” means an
integrated operation of units which may be related entities or may be property
elements such as machinery, buildings, land and other property used in the
performance of a service or the manufacture of a product.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.394“Tariff” defined. (NRS 360.090, 361.320)“Tariff” means the
compilation of the schedules of rates applicable to each of the products or
services supplied to the public and the regulations governing other aspects of
the sale.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.396“Taxable value” defined. (NRS 360.090, 361.320)“Taxable value” means the
value of a property determined by using the cost, income and market approaches
as described in NAC 361.200 to 361.508, inclusive.

NAC 361.398“Times interest earned” defined. (NRS 360.090, 361.320)“Times interest earned”
means the ratio of earnings before the interest expense to the interest
expense. The factor is an element used in determining risk by the purchaser of
debt issues of a company. Generally, the lower the factor the greater the risk.
Also called interest coverage, it may be the ratio of earnings before interest
and income taxes to interest expense.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.400“Uniform system of accounts” defined. (NRS 360.090,
361.320)“Uniform
system of accounts” means the prescribed method of accounting adopted by a
state regulatory agency, such as a public service commission, or by a federal
regulatory agency such as the Department of Transportation, the Federal
Communications Commission, the Federal Energy Regulatory Commission or the
Surface Transportation Board.

NAC 361.402“Unitary method of valuation” defined. (NRS 360.090,
361.320)“Unitary
method of valuation,” as used in the central assessment of utilities, is a
method of valuation which recognizes that a utility is an integrated enterprise
and that its market value is not a summation of the values of its various
physical components but its value as a whole as a going concern.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.404“Variable expenses” defined. (NRS 360.090, 361.320)“Variable expenses” means
those expenses of a business enterprise which vary with changes in the volume
of output such as outlays for fuel to generate electric power.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.406“Yield to maturity” defined. (NRS 360.090, 361.320)“Yield to maturity” means
the computation of the average rate of return on outstanding debt issues taking
into consideration the current price, interest payments and capital gains or
losses at the maturity of the issue.

1. The cost approach consists of that cost
of all operating assets subject to the ad valorem property tax pursuant to NRS 361.315 and 361.320 that most closely reflects
the taxable value of these operating assets.

2. For the income approach, the adjusted net
operating income either after or before an allowance for depreciation and
federal income tax will be capitalized (converted to value) through the use of
an appropriate capitalization rate for the industry group. The income of the
property to be capitalized will be determined as follows:

(a) With regard to those industry groups in which
annual earnings are reasonably stable, the most recent year’s earnings may be
capitalized.

(b) For those industry groups in which annual
earnings vacillate frequently over a period of years, an average of past
earnings may be used.

3. The market approach or stock and debt
method of valuation is a technique that is applicable to valuing railroads and
utilities, and it results initially in an enterprise value which encompasses
the entire unit. The stock and debt indicator will be determined by multiplying
either the average monthly, quarterly or annual high and low market price
quotations of all the securities which are actively traded in the market place
including common stock, preferred stock and long-term debt, by the number of
shares outstanding at the end of the year. With regard to those securities
which are not actively traded, computations of the present worth of the income
flows may be made for the determination of their value. To this amount will be
added short-term debt, together with other applicable adjustments. From this
amount will be deducted the nonoperating and nonassessable assets for the
indication of the value of those assets encompassed within NRS 361.315 and 361.320.

4. A review will be made of the one or more
available indicators of value. These indicators of value will then be
reconciled to derive the final estimate of value.

NAC 361.410Use of unit rule of valuation. (NRS 360.090, 361.320)In the valuation of those
properties which are listed in NRS
361.320, the unit rule of valuation will be used when considered
applicable. The unit rule generally applies to companies which own or operate
lines or roads which lie partly within and partly without Nevada. In these
cases, the Department will only value and assess the property within the State.
In determining the value of the portion within the State, the Department may
take into consideration the value of the entire system, the mileage of the
whole system and of the part within the State, together with such other
information, facts and circumstances as will support a substantially just and
correct determination.

[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.411Reports of construction work in progress. (NRS 360.090,
361.321)Construction
work in progress must be reported to the Department to the extent to which it
provides additional capacity even though part of the new construction replaces
existing property.

1. Determining the gross book cost for
financial reporting purposes of all taxable operating property, including, but
not limited to, all property relating to rail transportation, utility plant in
service, plant held for future use, contributed plant, nuclear fuel,
construction work in progress, experimental plant, acquisition adjustments,
materials and supplies, plant and other property leased from others and common
plant.

2. Deducting from the gross book cost the
accrued book depreciation recorded for financial reporting purposes, which may
include physical, functional and economic obsolescence. Additional obsolescence
must be deducted when adequately quantified.

(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98,
11-23-98)

NAC 361.4215Cost approach indicator of value: Optional cost information. (NRS 360.090,
361.320)The
taxpayer may present and the Department shall consider, in addition to the
information required by NAC 361.421, one or more of
the following alternative cost indicators of value:

1. A calculation of the reproduction cost
new less depreciation for all taxable operating property of the collective unit
being assessed. The calculation must have been performed in accordance with
generally accepted appraisal methodology.

2. A calculation of the replacement cost new
less depreciation for all taxable operating property of the collective unit
being assessed. The calculation must have been performed in accordance with
generally accepted appraisal methodology.

3. Any other relevant and verifiable
information, such as rate base for regulatory purposes.

1. The capitalized income approach consists
of deducting from the normalized and annualized gross operating income any
direct and indirect normalized and annualized operating expenses specifically
related to the normalized and annualized gross operating income including any
annualized book depreciation. Deferred income taxes will be treated as an
operating expense. Normalized and annualized rental expense on operating
property leased from others, less imputed depreciation, income taxes and other
applicable expenses, will be disallowed as an operating expense.

2. The resulting adjusted net operating
income will be capitalized (converted to value) using an appropriate
capitalization rate for the industry group. The capitalization rate for the
typical company will be used for the firms being appraised in each industry
group. The market capitalization rate will be derived from calculations made
for selected companies in each industry group.

3. The operating income to be capitalized
into taxable value will be normalized and annualized based on the most recent
year’s adjusted net operating income. When the most recent year’s net operating
income is not a reasonable representation of a company’s net operating income,
such as where a company’s net operating income tends to be cyclical, a 3- or
5-year average of adjusted net operating incomes will be normalized and
annualized and may be used.

4. Construction work in progress is not a
factor in applying the income approach to value.

5. Any normalization or annualization
adjustments to a company’s net operating income must be based on known,
measurable and experienced changes in a company’s operation or taxable property
as of the current year’s reporting date.

(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98,
11-23-98)

NAC 361.425Income approach indicator of value: Capitalization rate. (NRS 360.090,
361.320)The
capitalization rate will be established from a selected number of firms to
derive the rate for the typical company in each industry group when the
information is available:

1. The band-of-investment method will be
used in the compilation of the capitalization rate.

2. The band-of-investment method represents
the cost of the money needed by the typical company in each industry group to
acquire its operating plant and carry on its operations. It is composed of two
factors:

(a) The capitalization ratios of the typical
company; and

(b) The cost of the items which comprise the total
capital structure of the typical company.

3. A “typical company” means a theoretical
company which is representative of the firms within an industry group. The
selected firms in the industry group will be comparable in amount of revenues,
bond ratings, nature of operations and regulatory environment. Certain
nonutility conglomerates which have utility operations in Nevada will be
studied in the light of other similar conglomerates. Conglomerates will not be
grouped with nonconglomerates where possible. The development of the typical
company will reflect input by the companies within the industry group which are
centrally assessed.

4. The items which comprise the total
capital structure of the typical company are those amounts as recorded for
financial reporting purposes that represent the sources of the money or capital
funds made available to acquire the taxable operating property of the industry
group. For the purposes of this subsection, “capital funds” means money
obtained from:

(c) Similar financial capital accounts, except not
from the Federal Government through deferred income taxes.

Ê The total
capital structure of the typical company will be derived through the use of a
statistical median from the selected sample of firm calculations.

5. In addition to the total capital
structure of the typical company derived pursuant to subsection 4, the taxpayer
may present and the Department shall consider the total capital structure of
the typical company based upon common equity, preferred equity and the
long-term debt percentages as developed from market information for comparable
companies in the industry group. The total capital structure of the typical
company must be derived from the use of market information from the selected
sample of firm calculations.

6. The annual average of high-low monthly
yields to maturity compiled by Moody’s Investors Service (Public Utility and
Transportation), or another accepted service approved by the Executive Director
of the Department, will be used for the assignment of a cost to the long-term
bonded indebtedness component of the total capital structure.

7. The assignment of cost to preferred stock
will be determined in a manner consistent with subsection 6.

8. The assignment of cost to that portion of
the total capital structure which represents equity for the typical company in
each industry group will be determined in the following manner:

(a) The Department shall develop an equity rate for
each industry group based on one or more of the following models:

(1) Discounted cash-flow method.

(2) Capital asset-pricing.

(3) Risk premium analysis.

(b) The Department shall also consider the results
of cost of equity studies provided by members of the industry group based on
the models set forth in paragraph (a).

(c) When considered applicable, the cost of equity
capital established for the industry group may be determined by using
additional models, such as direct capitalization, accepted in the appraisal and
financial communities and approved by the Executive Director of the Department.

9. The capitalization rate of the typical
company for the industry group will be calculated by using a weighted method
(band-of-investment) which is the total capital structure percentage times the
component rate percentage. The weighted values are then totaled and rounded to
four decimal places to get the capitalization rate.

EXAMPLE:

MEDIAN

CAPITAL

WEIGHTED

TYPICAL
COMPANY

STRUCTURE

X

RATE =

RETURN

Common Equity

42.50%

11.20%

4.76000%

Preferred Equity

9.25%

9.35%

.86488%

Long-Term Debt

48.25%

9.45%

4.55963%

Capitalization Rate

for Industry Group

10.1845%

10. The determination of the income value
indicator requires the capitalization of the adjusted net operating income at
the current capitalization rate. Financial data for selected companies in each
industry group, as presented in the latest annual reports by Moody’s Investors
Service (Public Utility and Transportation), or another accepted service
approved by the Executive Director of the Department, will be used in the
compilation of the capitalization rate of the typical company.

11. An alternative to the capitalization
rate method in subsections 1 to 9, inclusive, may be the use of a rate for the
industry group as published by the Western States Association of Tax
Administrators, or another recognized tax related organization approved by the
Executive Director of the Department.

1. The stock and debt approach proposes a
value for the entire firm, but is generally recognized as a less applicable
methodology for determining the value of taxable property.

2. The stock and debt indicator is
determined by multiplying either the average monthly, quarterly or annual high
and low market price quotations, when available, for all the securities which
are actively traded in the market place, including common stock, preferred
stock and long-term debt, by the number of shares outstanding at the end of the
year. Computations of the present worth of income flows may be made to
determine values for securities which are not actively traded.

3. The value of the stock of a holding
company is apportioned among its operating companies according to the ratio of:

(a) Each operating company’s property to the
aggregate property of all of the operating companies, valued at historical cost
and weighted at one-third; and

(b) Each operating company’s net income before
income taxes to the aggregate net income of all of the operating companies,
weighted at two-thirds.

Ê For the
industry group of rail transportation, the direct deduction method to eliminate
nonoperating assets will be used when the information is available and
considered applicable.

4. To this amount will be added items such
as customer advances for construction which are nontaxable for federal income
tax purposes, current liabilities less dividends declared, the present worth of
leased property over the period of the lease together with any other items
conforming to the theory that if a person were to purchase all the stock and
assume all the outstanding liabilities of a company, the person would have
acquired all the assets which appear on the asset side of the balance sheet
and, therefore, own the company.

5. From this amount will be deducted the
market value of all exempt or nonoperating property, including, but not limited
to, cash, accounts receivable, notes receivable, miscellaneous investments,
temporary investments, nonoperating properties and other current and accrued
assets and properties not subject to the ad valorem property tax imposed by NRS 361.315 and 361.320.

1. Immediately related to the valuation
process is the reconciliation of one or more indicators of value to reach the
final estimate of value for the system.

2. For multiple departmental companies, when
considered applicable, the utility analyst will either reconcile the indicators
of value for allocation of the value of the system to the value to the various
departments, or use the adopted Western States Association of Tax
Administrators formulas, approved by the Executive Director of the Department,
to allocate the Department and stock and debt values based on the cost and
income data.

3. The utility analyst will reconcile in
writing to the taxpayer the relative significance, applicability and
defensibility of the indication of value derived from each approach to arrive
at, in the utility analyst’s professional judgment, the appropriate final
estimate of value for the system.

4. The utility analyst will reconcile, in
writing to the taxpayer, the facts, trends and observations developed in the
analysis and review the conclusion and the probable validity and reliability of
the conclusion.

1. Since the unit rule of valuation will be
used for all interstate and intercounty properties, an allocation of those
properties operating in Nevada will be made.

2. The allocation will:

(a) Total 100 percent for all states in which the
company operates; and

(b) Reflect the quantity of property in each state,
as well as the use or value of the property in each state.

3. Allocation factors will be those that are
readily available rather than requiring some new or additional statistic and
the factor will not be an allocation in and of itself.

4. The interstate allocation will be made in
proportion to the contribution to the unit value made by the property in
Nevada. The allocation will be a reflection of the property value. It is the
value of the existing property which is being allocated, not merely the amount
of the physical property.

5. Available quantity elements such as cost
and economic or use elements such as revenue will be used in the determination
of the allocation.

6. The interstate allocation formulas
adopted by the Western States Association of Tax Administrators will be
approved by the Executive Director of the Department and used when the
information is available and considered applicable.

2. Deducting from the gross book cost the
accrued book depreciation recorded for financial reporting purposes, which may
include, without limitation, physical, functional and economic obsolescence.
Additional obsolescence must be deducted when adequately quantified.

1. The capitalized income approach consists
of deducting from the normalized and annualized gross operating income any
direct and indirect normalized and annualized operating expenses specifically
related to the normalized and annualized gross operating income, including,
without limitation, any annualized book depreciation. Deferred income taxes
will be treated as an operating expense. Normalized and annualized rental expense
on operating property leased from others, less imputed depreciation, income
taxes and other applicable expenses, will be disallowed as an operating
expense.

2. The resulting adjusted net operating
income will be capitalized (converted to value) using an appropriate
capitalization rate for the airline industry group. The capitalization rate for
the typical company will be used for the carriers being appraised in each
airline industry group. The market capitalization rate will be derived from
calculations made for selected carriers in each airline industry group.

3. The operating income to be capitalized
into taxable value will be normalized and annualized based on the most recent
year’s adjusted net operating income. When the most recent year’s net operating
income is typically not a reasonable representation of the net operating income
of an airline, such as where the net operating income of the airline tends to
be cyclical, a 3- or 5-year average of adjusted net operating incomes will be
normalized and annualized and may be used.

4. The net operating income may be
capitalized before deducting any book depreciation or income tax if the
normalized and annualized net operating income results in a negative amount. If
any book depreciation or income tax is added to the net operating income before
the net operating income is capitalized, the capitalization rate must include a
component for that book depreciation or income tax.

5. Any normalization or annualization
adjustments to the net operating income of a carrier must be based on known,
measurable and experienced changes in the operation or taxable property of the
carrier as of the current year’s reporting date.

NAC 361.456Income approach indicator of value: Capitalization rate.(NRS 360.090,
361.320)The
capitalization rate will be established from a selected number of carriers and
determined in the following manner to arrive at the typical company in the
airline industry group when the information is available:

1. The band-of-investment method will be
used in the compilation of the capitalization rate.

2. The band-of-investment method represents
the cost of the money needed by the typical company in the airline industry
group to acquire its operating plant and carry on its operations. It is
composed of two factors:

(a) The capitalization ratios of the typical
company; and

(b) The cost of the items which comprise the total
capital structure of the typical company.

3. A “typical company” means a theoretical
company which is representative of the carriers within an airline industry
group. These carriers will be comparable in amount of revenues, bond ratings
and nature of operations. Certain nonairline conglomerates which have airline
operations in this State will be studied in light of other similar
conglomerates. Regular carriers will not be grouped with conglomerates where
possible. Development of typical company factors will reflect input by the
carriers within the airline industry group which are centrally assessed. As
used in this subsection, “nature of operations” includes, without limitation,
the size, route structure and fleet diversification of the air carrier.

4. The items which comprise the total
capital structure of the typical company are those amounts as recorded for
financial reporting purposes that represent the sources of the money or capital
funds made available to acquire the taxable operating property of the airline
industry group. As used in this subsection, “capital funds” means money
obtained from:

(c) Similar financial capital accounts except not
from the Federal Government through deferred income taxes.

Ê The capital
structure of the typical company will be derived through the use of a statistical
median from the calculations of the selected sample carriers.

5. In addition to the total capital
structure of the typical company derived by the Department pursuant to
subsection 4, the taxpayer may present and the Department shall consider the total
capital structure of the typical company based upon the common equity,
preferred equity and the long-term debt percentages as developed from market
information for comparable carriers in the airline industry group. The total
capital structure of the typical company must be derived from using market
information from the selected sample of carrier calculations.

6. The annual average of high-low yields to
maturity compiled by Moody’s Investors Service (Public Utility and
Transportation) or another acceptable service, approved by the Executive
Director of the Department, will be used for the assignment of a cost to the
long-term bonded indebtedness component of the total capital structure.

7. The assignment of cost to preferred stock
will be determined in a manner consistent with subsection 6.

8. The assignment of cost to that portion of
the total capital structure which represents equity for the typical company in
each airline industry group will be determined in the following manner:

(a) The Department shall develop an equity rate for
each airline industry group based on one or more of the following models:

(1) Discounted cash-flow method.

(2) Capital asset-pricing.

(3) Risk premium analysis.

(b) The Department shall also consider the results
of cost of equity studies provided by a carrier of the airline industry group
based on the models set forth in paragraph (a).

(c) When considered applicable, the cost of equity
capital established for the airline industry group may be determined by using
additional models, including, without limitation, direct capitalization,
accepted in the appraisal and financial communities and approved by the
Executive Director of the Department.

9. The capitalization rate of the typical
company for the airline industry group will be calculated by using a weighted
method (band-of-investment) which is the total capital structure percentage
times the component rate percentage. The weighted values are then totaled and
rounded to four decimal places to get the capitalization rate.

EXAMPLE:

MEDIAN

CAPITAL

WEIGHTED

TYPICAL COMPANY

STRUCTURE

X

RATE =

RETURN

Common Equity

42.50%

11.20%

4.76000%

Preferred Equity

9.25%

9.35%

.86488%

Long-Term Debt

48.25%

9.45%

4.55963%

Capitalization Rate

for Industry Group

10.1845%

10. The determination of the income value
indicator requires the capitalization of the adjusted net operating income at
the current capitalization rate. Financial data for selected carriers in each
airline industry group as presented in the latest annual reports by Moody’s
Investors Service (Public Utility and Transportation) or another accepted
service, approved by the Executive Director of the Department, will be used in
the compilation of the capitalization rate of the typical company.

1. Immediately related to the valuation
process is the reconciliation of one or more indicators of value to reach the
final estimate of value for the system.

2. The analyst will reconcile in writing to
the taxpayer the relative significance, applicability and defensibility of the
indication of value derived from each approach to arrive at, in the
professional judgment of the analyst, the appropriate final estimate of system
value for the air transport company.

3. The analyst will reconcile in writing to
the taxpayer the facts, trends and observations determined in the analysis and
review the conclusion and the probable validity and reliability of that
conclusion.

(b) “Nonallocable flight equipment” means only that
property or equipment which is not attached or required to be aboard or part of
an aircraft which is ready for flight.

3. Every item of property which is required
to be aboard for the operation of the aircraft will be classified as allocable
flight equipment.

4. The only instances when an aircraft will
be classified as nonallocable are when:

(a) The carrier purchased an aircraft which was not
delivered or was delivered too late to have participated in the creation of the
allocation statistics; or

(b) An aircraft which is owned by the carrier was
leased to and operated by another party.

5. The percentage of the total amount of tangible
personal property of the carrier which the allocable flight equipment
represents will be calculated and applied to the total estimate of value of the
assessable property of the carrier.

1. Since the unit rule of valuation will be used
for the described properties, an allocation of those properties operating in
Nevada will be made.

2. The allocation will:

(a) Total 100 percent for all states in which a
company operates; and

(b) Reflect the quantity of property in each state,
as well as the use or value of the property in each state.

3. Allocation factors will be those that are
readily available rather than requiring some new or additional statistic, and a
factor will not be an allocation itself.

4. The interstate allocation will be made in
proportion to the contribution to the unit value made by the property in
Nevada. Allocation will be made in the light of the property value. It is the
value of the existing property which is being allocated, not merely the amount
of the physical property.

5. Available quantity elements such as cost
and economic or use elements such as revenue will be used in the determination
of the allocation.

6. The following elements will be considered
in the allocation of allocable flight equipment to Nevada and are assigned the
following weight:

(a) Air and ground time weighted to the original
cost of allocable flight equipment, 50 percent;

(b) Originating and terminating tonnage, 15
percent; and

(c) Revenue ton miles flown, 35 percent.

[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]

NAC 361.466Development, application of factor for property located in
Nevada. (NRS 360.090, 361.320)

1. The depreciated cost of the total
tangible property of the carrier will be related to the estimate of value for
the system for that same property in the form of a percentage. (This estimate
of value will be determined by using the three approaches to value divided by
the depreciated cost of the total tangible property.)

2. The factor so developed will be applied
to that ground property having situs in Nevada.

[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]

NAC 361.468Addition of property located in Nevada. (NRS 360.090,
361.320)The
adjusted estimate of value for the situs property in Nevada will be added to
the flight equipment which was allocated to Nevada for the final estimate of
value for Nevada.

[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]

Certain Air Transport Companies, Airline Industry Groups,
and Unscheduled or Charter Air Carriers

1. The provisions of NAC
361.469 and 361.4695 apply to each air
transport company or airline industry group, including, without limitation,
regional airlines or unscheduled airlines, for which information is
insufficient to complete a valuation pursuant to NAC
361.451 to 361.468, inclusive.

2. The property of an unscheduled or a
charter air carrier which is not domiciled in Nevada may be valued pursuant to
this section and NAC 361.469 and 361.4695 and placed on the unsecured tax roll.

1. All allocable flight equipment may be
valued in accordance with the Personal Property Manual published by the
Department and approved by the Commission pursuant to NAC
361.1365 for each fiscal year or in accordance with other books or manuals
that provide guidance in establishing value approved by the Executive Director.

2. A portion of the value of the flight
equipment will be allocated to Nevada based on an average of the data described
in subsection 3 or described in NAC 361.464 when
the information is available and considered applicable.

3. The weighted ground-time ratio, as
indicated by flight schedules, plane hours, originating and terminating tonnage
and revenue ton miles flown in Nevada, as a percentage of the system, will be
used as the statistic for allocating value to Nevada.

NAC 361.4695Property located in Nevada. (NRS
360.090, 361.320)To the
value of the flight equipment allocated to Nevada will be added the depreciated
book cost of all ground property in Nevada, including, without limitation,
buildings and improvements, furniture, fixtures, machinery, equipment and
nonallocable flight equipment. The value of the property which is not
represented by the depreciated book cost, including, without limitation, leased
and rented property, may be added to determine the total value of the operation
in this State.

NAC 361.508Valuation. (NRS 360.090, 361.320)In the valuation of
municipal utilities, the depreciated book cost of all operating facilities in
Nevada subject to assessment pursuant to NRS 361.315 and 361.320 will be used.

1. “Appraiser” means an employee of or an
independent contractor with the State of Nevada or any of its political
subdivisions who exercises judgment using his or her skills and knowledge of
property appraisal to estimate the value of property for the purpose of
taxation.

2. The term does not include a person who
only collects data or manipulates computer programs to collect and organize
data but does not render an estimate of the value of property.

(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

NAC 361.539“Appraiser’s certificate” defined. (NRS 360.090,
361.221)“Appraiser’s
certificate” means a certificate issued by the Department that authorizes a
person to perform the duties of an appraiser.

(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

NAC 361.541“Appraiser’s certificate examination” defined. (NRS 360.090,
361.221)“Appraiser’s
certificate examination” means a comprehensive examination administered by the
Department which covers the technical, legal and administrative aspects of the
appraisal and assessment of property and which consists of a section that tests
general knowledge and a section that tests specific knowledge.

NAC 361.549“Independent contractor” defined.
(NRS 360.090, 361.221)“Independent contractor”
means a person who contracts with, but is not otherwise employed by, the State
of Nevada or any of its political subdivisions to perform the duties of an
appraiser.

1. A person who is newly employed as an
appraiser by the State of Nevada or any of its political subdivisions may apply
to the Department for a temporary appraiser’s certificate.

2. The application must satisfy the
requirements of NRS 361.2224
and 361.2225, be on a form
approved by the Department and include:

(a) The name of the applicant;

(b) The mailing address and telephone number of the
place of employment of the applicant;

(c) Verification of the employment of the
applicant; and

(d) Such other information as the Department may
require.

3. The Department will provide each
applicant with a list of the dates on which and the locations at which the
appraiser’s certificate examination will be offered.

4. The Department will issue a temporary
appraiser’s certificate to a qualified applicant within 30 days after receiving
the application. The certificate must include the name of the person to whom
and the date on which it is issued, designate whether the holder is authorized
to appraise real property or personal property, or both, and be signed by an
authorized representative of the Department.

1. A person who is employed as an appraiser
by the State of Nevada or any of its political subdivisions may apply to the
Department for an appraiser’s certificate.

2. The application must satisfy the
requirements of NRS 361.2224
and 361.2225, be on a form
approved by the Department and include:

(a) The name of the applicant;

(b) The mailing address and telephone number of the
place of employment of the applicant;

(c) Verification of the employment of the
applicant; and

(d) Such other information as the Department may
require.

3. Except as otherwise provided in
subsection 4, to be eligible for an appraiser’s certificate, the applicant must
pass the appraiser’s certificate examination.

4. An applicant who submits proof
satisfactory to the Department that he or she has earned a professional
designation from any of the member organizations of the Appraisal Foundation is
not required to take the section of the appraiser’s certificate examination
that tests specific knowledge. Such professional designations include, without
limitation:

(a) Member, Appraisal Institute (MAI).

(b) Certified Assessment Evaluator (CAE).

(c) Senior Real Property Appraiser (SRPA).

(d) Senior Real Estate Analyst (SREA).

(e) Residential Member (RM).

(f) Residential Evaluation Specialist (RES).

(g) Senior Residential Appraiser (SRA).

(h) Personal Property Specialist (PPS).

5. If an applicant, pursuant to subsection
4, submits proof of a professional designation that signifies specialization in
the appraisal of real property or personal property, but not both, the
Department, if it issues an appraiser’s certificate to the applicant, will
issue a real property appraiser’s certificate or a personal property
appraiser’s certificate, as applicable.

1. A person who wishes to perform the duties
of an appraiser as an independent contractor with the State of Nevada or any of
its political subdivisions may apply to the Department for an independent
contractor’s appraiser’s certificate.

2. The application must satisfy the requirements
of NRS 361.2224 and 361.2225, be on a form approved by
the Department and include:

(a) The name of the applicant;

(b) The mailing address and telephone number of the
applicant; and

(c) Such other information as the Department may
require.

3. In addition to the requirements of
subsection 2, the applicant must provide the Department with the resume of the
applicant which documents the applicant’s education, his or her experience as
an appraiser and any professional designations or certificates he or she holds,
and which contains the names of at least two personal references. The
Department may investigate the truthfulness of the information and
representations set forth in the resume.

4. Except as otherwise provided in
subsection 5, to be eligible for an independent contractor’s appraiser’s
certificate, the applicant must pass the appraiser’s certificate examination.

5. An applicant who submits proof
satisfactory to the Department that he or she has earned a professional
designation from any of the member organizations of the Appraisal Foundation is
not required to take the section of the appraiser’s certificate examination
that tests specific knowledge. Such professional designations include, without
limitation:

(a) Member, Appraisal Institute (MAI).

(b) Certified Assessment Evaluator (CAE).

(c) Senior Real Property Appraiser (SRPA).

(d) Senior Real Estate Analyst (SREA).

(e) Residential Member (RM).

(f) Residential Evaluation Specialist (RES).

(g) Senior Residential Appraiser (SRA).

(h) Personal Property Specialist (PPS).

6. If an applicant, pursuant to subsection
5, submits proof of a professional designation that signifies specialization in
the appraisal of real property or personal property, but not both, the
Department, if it issues an appraiser’s certificate to the applicant, will
issue a real property appraiser’s certificate or a personal property
appraiser’s certificate, as applicable.

1. An independent contractor’s appraiser’s
certificate must be renewed annually.

2. Except as otherwise provided in
subsection 3, an application for renewal must be made in the same manner as,
and is subject to the same requirements applicable to, an initial application
as set forth in NAC 361.559.

3. The Department will waive the examination
requirement for renewal if the applicant for renewal has satisfied the
requirements for continuing education set forth in this chapter and NRS 361.223 and requests on the
application for renewal that the examination requirement be waived.

4. Before an independent contractor’s
appraiser’s certificate is renewed, the independent contractor must present
proof satisfactory to the Department that he or she has contracted with the
State of Nevada or any of its political subdivisions as an independent
contractor within the immediately preceding 12 months, or that he or she has a
reasonable expectation of so contracting within the next following 12 months.

1. The Department will offer the appraiser’s
certificate examination at least once each quarter. At least one administration
of the examination each year must be at a location in northern Nevada, and at
least one administration of the examination each year must be at a location in
southern Nevada. A county assessor may submit to the Department a written
request for an additional examination time and location. The Department will
consider such a request if the budget of the Department is adequate to support
the additional examination time and location.

2. The section of the appraiser’s
certificate examination that tests general knowledge must, without limitation,
test the knowledge and understanding of an applicant concerning:

(a) Land description and land use classifications;

(b) Principles and concepts of the appraisal of
property;

(c) Relevant statutes and regulations of this
State; and

(d) Principles of property tax administration.

3. The section of the appraiser’s
certificate examination that tests specific knowledge must, without limitation,
test the knowledge and understanding of an applicant concerning either:

(a) Principles and concepts of the appraisal of
real property, which must include, without limitation:

(1) Land and land identification;

(2) Approaches to estimating the value of real
property;

(3) Depreciation of real property; and

(4) Mass appraisal; or

(b) Principles and concepts of the appraisal of
personal property, which must include, without limitation:

(1) Terminology;

(2) Approaches to estimating the value of
personal property;

(3) Depreciation of personal property; and

(4) Analysis of financial data.

4. To pass the appraiser’s certificate
examination, an applicant must receive a score of at least 70 percent on each
section. The Department will mail to an applicant the results of his or her
examination within 14 days after the applicant completes the examination.

5. An applicant will be given credit for
each section of the examination that he or she passes. If an applicant passes
only one section of the examination, the applicant may make a written request
to the Department to retake the section that he or she did not pass.

6. An applicant who fails a section of the
examination may request information from the Department concerning the general
subject areas in that section which the applicant answered incorrectly. An
applicant is not entitled to review his or her completed examination booklet or
answer sheet after it is submitted for grading.

7. An applicant must direct any challenge to
the content of the examination or to the validity and correctness of any
question or answer to the Board. The challenge must be in writing and be
postmarked not later than 10 calendar days after the receipt by the applicant
of the results of the examination. The Board will not consider challenges
containing mere statements of conclusion, belief or preference.

8. The Department, in consultation with the
Board, may revise and update the examination at any time. The revising and
updating of the examination may be performed by the personnel of the
Department, or the Department may contract with a natural person or entity that
specializes in the development of such examinations to revise and update the
examination.

9. An applicant must submit to the
Department a fee of $25 for each section of the examination that the applicant
wishes to take or retake.

1. The Board will review courses of
continuing education and may recommend the approval of such a course by the
Department if the Board determines that:

(a) After evaluating the contents of the course for
correctness, applicability to appraisal for property tax purposes and relevance
to current issues and trends concerning appraisal, the subject matter of the
course is relevant to understanding and applying the standards established by
the International Association of Assessing Officers or any other member
organization of the Appraisal Foundation;

(b) The subject matter of the course is relevant to
understanding:

(1) The application of the statutes and
regulations of this State;

(2) The published appraisal and assessment
standards of the Department;

(3) Laws relating to real estate, water and
mining; or

(4) Administrative procedures;

(c) The subject matter of the course is relevant to
understanding the concepts and applications of mass appraisal, including,
without limitation, the application of technology such as geographic
information systems (GIS) mapping and computer automated mass appraisal
systems; or

(d) The subject matter of the course is relevant to
understanding the concepts and applications of the appraisal of centrally
assessed properties, including, without limitation, principles of accounting
and finance.

2. A person who wishes to receive contact
hours for a course of continuing education that has not been approved by the
Department must apply to the Department for such approval before taking the
course. The application must be in writing and include, without limitation, the
name and address of the organization that is sponsoring the course, a list of
the instructors of the course and their qualifications, and a syllabus of the
course that indicates the coursework and the books to be used in the course.

3. The Department will provide a list of all
approved educational courses to the assessor of each county, and may provide
the list to any other person who requests it in writing. The Department will
update the list at least every 3 years.

1. The Department, in consultation with the
Board, will determine the appropriate number of contact hours to be awarded for
each approved education course. The Department will award the appropriate
number of contact hours to persons who complete approved education courses and
provide documentation to the Department as required by subsection 2. Unless
otherwise noted on the certificate of completion for an approved course of
education, contact hours may be awarded as follows:

(a) If a person completes an approved education
course that consists of 4 days of instruction or less, the Department may award
the person 8 contact hours for each day of the course.

(b) If a person completes an approved education
course that consists of 4 days of instruction and an examination on the fifth
day, the Department may award the person 36 contact hours.

(c) If a person completes an approved education
course that consists of 5 days of instruction the first week and 4 1/2 days of
instruction the second week, the Department may award the person 76 contact
hours.

(d) If a person completes an approved education
course offered by a university or community college, the Department may award
the person 12 contact hours for each semester credit earned.

(e) If an approved education course includes an
examination for the course and a person completes the instruction for the
course but fails to pass the examination, the Department may award the person
one-half of the contact hours that the person would have been awarded had he or
she passed the examination. If the person did not complete the instruction for
the course, the Department may award the person 4 contact hours for each full
day of instruction that he or she completed if the person provides evidence satisfactory
to the Department of his or her attendance at the course. If a person who is
awarded contact hours pursuant to this paragraph subsequently passes the
examination for the course, the Department may award the person a number of
contact hours equal to the total contact hours approved for the course minus
contact hours previously awarded to the person for the course pursuant to this
paragraph.

(f) The Department will not award any contact hours
for the completion of any portion of a course in real estate or the appraisal
of property if the primary objective of the course is to prepare those persons
taking the course to take and pass an examination for licensure in real estate
or the appraisal of property.

(g) The Department will not award any contact hours
for any portion of a course at a university or community college if the person
taking the course does not earn a passing grade or withdraws from the course.

(h) If a person instructs an approved education
course, the Department may award the person a number of contact hours equal to
the number of hours the person spent lecturing during the course or teaching as
part of a group. The Department will not award contact hours:

(1) For any time the person spent on preparing
for the course, grading students, or assisting students on projects or
assignments outside of class; or

(2) For teaching the same course more than
once in a 12-month period.

2. A person who holds an appraiser’s
certificate and for whom the annual training requirement has not been waived
pursuant to NRS 361.223 shall,
on or before July 1 of each year, provide written documentation to the
Department of each approved education course the person has taken, and the total
contact hours he or she has earned, since July 1 of the previous year. The
documentation for each course must include, without limitation, a certificate
of attendance that shows the name of the person, the name of the course, the
signature of the instructor of the course or the authorized representative of
the organization that sponsored the course, and the dates of the person’s
attendance at the course. A transcript of grades, if any, from the organization
that sponsored the course must also be submitted. If the course was taken at a
university or community college, a certified transcript may be submitted in
lieu of a certificate of attendance.

3. The Department, in consultation with the
Board, may consider granting a person full credit towards the annual training
requirement of 36 contact hours set forth in NRS 361.223 for approved education
courses previously taken if:

(a) The person makes a request to the Department
for such credit;

(b) At least 3 years have elapsed since the person
last attended the course;

(c) The person has not previously received contact
hours for the course; and

(d) No other training is available to enable the
person to comply with the annual training requirement of 36 contact hours.

4. To qualify for a waiver of the annual
training requirement pursuant to paragraph (b) of subsection 2 of NRS 361.223, a person who holds an
appraiser’s certificate must complete as part of the 180 contact hours of
accepted training required by that paragraph at least 4 hours of training in
ethical and professional standards.

5. If a person for whom the annual training
requirement has been waived pursuant to NRS 361.223 accumulates more than
36 contact hours during any 5-year period thereafter, the excess contact hours
will not be carried forward.

6. The Department will notify each person
who holds an appraiser’s certificate and who has not satisfied the continuing
education requirements for a fiscal year or a 5-year period, as applicable,
that the appraiser’s certificate is subject to suspension or revocation
pursuant to NRS 361.224. The
notice will be sent by United States mail at least 60 days before the end of
the fiscal year or 5-year period to the address of the person as listed in the
files of the Department. If the Department does not receive a response to the
notice within 30 days after mailing, the Department will forward the matter to
the Board for consideration at its next regularly scheduled meeting. The Board
will review the matter and provide its recommendation to the Department
concerning whether the appraiser’s certificate should be suspended or revoked.

1. The Department will maintain current
records of continuing education for each person employed as an appraiser by
this State or a political subdivision of this State.

2. The Department will maintain for not less
than 10 years records of continuing education for each independent contractor
and each person formerly employed as an appraiser by this State or a political
subdivision of this State.

3. The records of continuing education for
each person are confidential and must not be made available to any person other
than the staff of the Department, the members of the Board or the employer of
the person to whom the records pertain, unless the person to whom the records
pertain has provided prior written authorization to the Department.

4. A person may request in writing a copy of
the transcript of his or her records of continuing education. The Department
will provide such a transcript at no charge.

1. The Department may suspend the
appraiser’s certificate of a person under any of the following circumstances:

(a) Upon the recommendation of the Board if the
person fails to satisfy the requirements for continuing education set forth in
this chapter and NRS 361.223.
The Department may, upon the recommendation of the Board, reinstate the
appraiser’s certificate if the person subsequently satisfies the requirements
for continuing education.

(b) Upon the recommendation of the Board if the
person is an independent contractor and the person fails to renew his or her
appraiser’s certificate annually as required by this chapter. The Department
may, upon the recommendation of the Board, reinstate the appraiser’s
certificate if the person subsequently satisfies the requirements for renewing
his or her appraiser’s certificate.

(c) In accordance with the provisions of subsection
1 of NRS 361.2226. The
Department may reinstate the appraiser’s certificate in accordance with the
provisions of subsection 2 of NRS
361.2226.

2. The Board may not recommend the
suspension of an appraiser’s certificate except after a meeting noticed in
accordance with NRS 241.034.

3. A person whose appraiser’s certificate is
suspended by the Department shall not render an opinion concerning the value of
property but may collect data for use by certified appraisers to establish
value.

1. The Department may, upon the
recommendation of the Board, revoke the appraiser’s certificate of a person
under any of the following circumstances:

(a) The person fails to satisfy the requirements
for continuing education set forth in this chapter and NRS 361.223. The Department may,
upon the recommendation of the Board, reinstate the appraiser’s certificate if
the person subsequently satisfies the requirements for continuing education and
passes the appraiser’s certificate examination.

(b) The person is an independent contractor and the
person fails to renew his or her appraiser’s certificate annually as required
by this chapter. The Department may, upon the recommendation of the Board,
reinstate the appraiser’s certificate if the person subsequently satisfies the
requirements for renewing his or her appraiser’s certificate and passes the
appraiser’s certificate examination.

(c) The person’s appraiser’s certificate has been
suspended for a period of more than 1 year. The Department may, upon the
recommendation of the Board, reinstate the appraiser’s certificate if the
person passes the appraiser’s certificate examination.

(d) The person engages in unethical professional
conduct, including, without limitation:

(1) Making oral or written public statements
in the course of performing duties as an appraiser that are untrue or intended
to mislead or deceive the public.

(2) Engaging in activities relating to the
appraisal or assessment of property if the person has, or may reasonably be
considered by the public as having, a conflict of interest with regard to that
property.

(3) Accepting assignments relating to the
appraisal or assessment of property which are contingent on or influenced by
any condition that could impair the objectivity of the person.

(4) Failing to perform the duties of an
appraiser in accordance with applicable statutes and regulations.

2. If the appraiser’s certificate of a
person is revoked pursuant to paragraph (d) of subsection 1:

(a) The Department will not accept or review an
application for an appraiser’s certificate from that person within 3 years
after the date of the revocation.

(b) If the person files an application for an
appraiser’s certificate after the expiration of the 3-year period, the
applicant must:

(1) Provide the Department with the resume of
the applicant which documents his or her education, his or her experience as an
appraiser and any professional designations or certificates he or she holds,
and which contains the names of at least two personal references. The
Department may investigate the truthfulness of the information and
representations set forth in the resume.

(2) Pass the appraiser’s certificate
examination.

(c) The Board may recommend that the application
for an appraiser’s certificate filed by the person pursuant to paragraph (b) be
approved if the Board finds that the person has satisfied the requirements of
paragraph (b) and that the person has not engaged in unethical professional
conduct as described in paragraph (d) of subsection 1 at any time since the
revocation of his or her appraiser’s certificate.

3. The Board may not recommend the
revocation of an appraiser’s certificate except after a meeting noticed in
accordance with NRS 241.034.

4. A person whose appraiser’s certificate is
revoked by the Department shall not render an opinion concerning the value of
property but may collect data for use by certified appraisers to establish
value.

(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

NAC 361.575Appeal of suspension or revocation of appraiser’s certificate. (NRS 360.090,
361.221)A
decision of the Department to suspend or revoke an appraiser’s certificate may
be appealed to the Commission pursuant to the provisions of NRS 360.245.

(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

EQUALIZATION OF ASSESSMENTS AMONG THE SEVERAL COUNTIES

NAC 361.580Ratio study. (NRS 360.090, 361.333)Classes of properties
sampled by the Department in conducting a ratio study pursuant to NRS 361.333 will be established and
divided as the Department deems appropriate or as required by state or federal
law. In addition to the criteria which NRS 361.333 specifies to be
included in a ratio study, the Department will include the coefficient of
dispersion.

1. The Department may waive or reduce the
penalty or interest for a delinquent payment of property tax which is imposed
pursuant to NRS 361.483 and 361.535 if it finds that the
proximate cause of the delinquent payment was:

(a) Circumstances completely beyond the control of
the taxpayer who was required to make the payment, or the agent of the taxpayer;

(b) Justifiable neglect or justifiable
inadvertence, and that the taxpayer making the payment has no history of
habitually delinquent payments; or

(c) For other good cause shown.

2. Any application for waiver or reduction
of the penalty or interest for delinquent payment must be filed in writing
under oath with the Department within 60 days after the date the tax is due
setting forth the circumstances which caused the delinquent payment. The
Department shall provide a copy of the application to the county tax receiver
who may, within 15 days, submit relevant information regarding the application
to the Department. The Department will provide notice to the tax receiver and
the taxpayer, or the agent of the taxpayer, of its determination. The notice
will specify any action that the Department has directed must be taken.

3. In determining whether or not the
circumstances which caused the delinquent payment in any particular case were
completely beyond the control of the taxpayer required to make the payment, or
the agent of the taxpayer, the Department shall consider only evidence which
shows that the delinquent payment was proximately caused by fire, earthquake,
flood or other acts of God, theft or similar causes not directly related to the
actions of the taxpayer who was required to make the payment, or the agent of
the taxpayer, whether intentional or not, and that the tax was paid as soon as
reasonably possible thereafter. In these circumstances, all of the penalty or
interest, or both, will be waived.

4. If the Department finds that the
proximate cause of a delinquent payment was justifiable neglect or justifiable
inadvertence, and that the tax was paid as soon as reasonably possible
thereafter, the penalty or interest imposed for the delinquent payment will be
reduced to a total of not more than 50 percent of the penalty or interest
imposed.

5. In determining whether the proximate
cause of the delinquent payment was for other good cause shown, the Department
will require the taxpayer to submit, without limitation, evidence that the tax
was paid as soon as reasonably possible and that the assessment of penalties
and interest:

(a) Constitutes an extreme financial hardship; or

(b) Is extremely unfair or extremely inequitable
under the circumstances.

6. As used in this section, “extreme
financial hardship” means that the taxpayer who owes the tax has the present
ability to pay the tax but payment of the penalties and interest will render
the taxpayer insolvent.

(Added to NAC by Tax Comm’n, eff. 9-6-96)—(Substituted
in revision for NAC 361.610)

NAC 361.5954“Delinquent taxes” defined. (NRS 360.090, 360.250)“Delinquent taxes” means
any real property taxes that remain unpaid after the date the last installment
of the taxes becomes due pursuant to NRS
361.483.

(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

NAC 361.5956“Parcel number” defined. (NRS 360.090, 360.250)“Parcel number” means the
parcel number assigned to a parcel of real property pursuant to NRS 361.189 by the county assessor
of the county in which the property is located.

1. An owner of a parcel of real property who
wishes to authorize the county treasurer of the county in which the property is
located to assign a tax lien on the property pursuant to NRS 361.7311, must file with the
county treasurer an affidavit of authorization as provided in this section.

2. If the property is owned by more than one
person:

(a) Each such person must join in the affidavit of
authorization and the separate written agreement with the assignee required by
subsection 2 of NRS 361.7311.

(b) The affidavit of authorization must designate
one of the owners or an authorized agent of the owners to:

(1) Respond to any inquiry from the county
treasurer relating to the assignment; and

(2) Receive any notice given by the county
treasurer pursuant to NAC 361.5964.

3. The affidavit of authorization must be
made on a form approved by the Commission, comply with the requirements of
subsection 3 of NRS 247.110 and
include:

(a) The name, mailing address, electronic mail
address and daytime telephone number of the owner or an authorized agent of the
owner;

(b) The name, mailing address, electronic mail
address and daytime telephone number of the assignee;

(c) The legal description of the property and, if
the description is by metes and bounds, the name and address of the entity or
natural person who prepared the description;

(d) The street address, if applicable, and parcel
number of the property;

(e) The total amount of all delinquent taxes
assessed and owed against the property for any preceding tax year;

(f) If any installment of the taxes assessed
against the property for the current tax year has not been paid, the total
amount of the taxes assessed against the property for the current tax year,
including, without limitation, the amount of any installment that has not yet
become due;

(g) The amount of any applicable penalties,
interest, fees and costs as of the date of the affidavit;

(h) If a certificate has been issued to the county
treasurer with respect to the property pursuant to NRS 361.570, any other amount
required to be paid pursuant to subsection 4 of that section and not otherwise
described in paragraph (e), (f) or (g) of this subsection;

(i) Each preceding tax year for which delinquent
taxes are owed and, if any installment of the taxes assessed against the property
for the current tax year has not been paid, the current tax year;

(j) A statement that neither the owner nor the
property is the subject of a pending proceeding in bankruptcy;

(k) A statement authorizing the assignee to pay:

(1) All delinquent taxes assessed and owed
against the property for any preceding tax year;

(2) If any installment of the taxes assessed
against the property for the current tax year has not been paid, the total
amount of the taxes assessed against the property for the current tax year,
including, without limitation, the amount of any installment that has not yet
become due;

(3) Any applicable penalties, interest, fees
and costs imposed by any local taxing entity or its agent for each tax year
specified in the affidavit; and

(4) If a certificate has been issued to the
county treasurer with respect to the property pursuant to NRS 361.570, any other amount
required to be paid pursuant to subsection 4 of that section and not otherwise
described in subparagraph (1), (2) or (3) of this paragraph;

(l) If the property is owned by more than one
person, a statement that each such person has joined in the affidavit of
authorization and the separate written agreement with the assignee required by
subsection 2 of NRS 361.7311;

(m) A statement authorizing the county treasurer:

(1) To certify that payment has been tendered
on behalf of the owner of:

(I) All delinquent taxes assessed and
owed against the property for any preceding tax year;

(II) If any installment of the taxes
assessed against the property for the current tax year has not been paid, the
total amount of the taxes assessed against the property for the current tax
year, including, without limitation, the amount of any installment that has not
yet become due;

(III) Any applicable penalties, interest,
fees and costs; and

(IV) If a certificate has been issued to
the county treasurer with respect to the property pursuant to NRS 361.570, any other amount
required to be paid pursuant to subsection 4 of that section and not otherwise
described in sub-subparagraph (I), (II) or (III) of this subparagraph; and

(2) To assign the tax lien on the property to
the assignee; and

(n) The signature of the owner, acknowledged before
a notary public.

4. The affidavit of authorization must be
accompanied by a copy of the separate written agreement between the owner and
the assignee required by subsection 2 of NRS 361.7311.

(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

NAC 361.5962Duties of county treasurer upon receipt of affidavit of authorization;
affidavit of compliance; affidavit of exemption. (NRS 360.090,
360.250)

1. Upon receipt of an affidavit of authorization
pursuant to NAC 361.596, the county treasurer shall
confirm:

(a) The last known owner or owners of record of the
parcel of real property for which the affidavit is made, by inspecting:

(1) The records of the county assessor of the
county in which the property is located; or

(2) Any other recorded document provided by
the owner and acceptable to the county assessor;

(b) The parcel number of the property and whether
the property is on the secured or unsecured tax roll, by inspecting the records
of the county assessor;

(c) Whether any taxes assessed against the property
or any applicable penalties, interest, fees or costs are owed for a tax year
not specified in the affidavit of authorization;

(d) That the assignee has complied with the bonding
requirements of NRS 361.7314 or
is exempt from those requirements; and

(e) That the assignee has tendered the full amount
of:

(1) All delinquent taxes assessed and owed
against the property for any preceding tax year;

(2) If any installment of the taxes assessed
against the property for the current tax year has not been paid, the total
amount of the taxes assessed against the property for the current tax year,
including, without limitation, the amount of any installment that has not yet
become due;

(3) Any applicable penalties, interest, fees
and costs; and

(4) If a certificate has been issued to the
county treasurer with respect to the property pursuant to NRS 361.570, any other amount
required to be paid pursuant to subsection 4 of that section and not otherwise
described in subparagraph (1), (2) or (3) of this paragraph.

2. For any assignee who is not exempt from
the bonding requirements of NRS
361.7314, the county treasurer may consider any reliable evidence that the
assignee has complied with those requirements, including, without limitation:

(a) A copy of the bond posted by the assignee,
certified by the surety or custodian of the bond to be a true and correct copy
of the bond currently in force; or

(b) An affidavit of the assignee or an authorized
representative of the assignee, filed with the county treasurer and attesting
to compliance by the assignee with NRS
361.7314.

3. An affidavit of compliance filed pursuant
to subsection 2 must be made on a form approved by the Commission, comply with
the requirements of subsection 3 of NRS
247.110 and include:

(a) The name, mailing address and electronic mail
address of the assignee;

(b) If the affidavit is made by an authorized
representative of the assignee, the name and job title of the affiant;

(c) A statement that the affiant is of sound mind,
competent to make the affidavit, and that the statements in the affidavit are
based on the affiant’s personal knowledge of the records of the assignee;

(d) A statement that the assignee has posted and
maintains a bond meeting the requirements of NRS 361.7314;

(e) A statement that true and correct copies of the
bond and the annual statement most recently filed with the Secretary of State
pursuant to NRS 361.7314 are
attached to the affidavit; and

(f) The signature of the affiant, acknowledged
before a notary public.

4. An affidavit of compliance filed pursuant
to subsection 2 must be accompanied by copies of the bond posted by the
assignee and the annual statement most recently filed with the Secretary of
State pursuant to NRS 361.7314.

5. An assignee who claims to be exempt from
the requirements of NRS 361.7314
because of a familial relationship with the owner must make and file with the
county treasurer an affidavit of exemption. The affidavit of exemption must be
made on a form approved by the Commission, comply with the requirements of
subsection 3 of NRS 247.110 and
include:

(a) The name, mailing address, electronic mail
address and daytime telephone number of the assignee;

(b) A statement that the assignee is exempt from
the requirements of NRS 361.7314
because of the assignee’s familial relationship with the owner;

(c) A statement of the nature of the relationship,
showing that the assignee is related to the owner within the third degree of
consanguinity;

(d) A statement that the assignee is of sound mind,
competent to make the affidavit and that the statements in the affidavit are
based on personal knowledge; and

(e) The signature of the assignee, acknowledged
before a notary public.

1. The county treasurer shall not issue a
certificate of assignment of a tax lien if the county treasurer:

(a) Believes that any information included in the
affidavit of authorization filed pursuant to NAC
361.596 is inaccurate or incomplete;

(b) Determines that the property is on the
unsecured tax roll;

(c) Except as otherwise ordered by the federal
bankruptcy court in which the proceeding is pending, determines that an owner
of the property or the property itself is the subject of a pending proceeding
in bankruptcy;

(d) Determines that any taxes assessed against the
property or any applicable penalties, interest, fees or costs are owed for a
tax year not specified in the affidavit of authorization;

(e) Determines that the assignee has failed to
tender any part of the amount required to be tendered pursuant to NRS 361.7312 and NAC 361.5962; or

(f) Determines that an owner of the property or the
assignee has not complied with any requirement of:

2. If, pursuant to subsection 1, the county
treasurer is unable to issue a certificate of assignment, he or she shall give
written notice of that fact to the assignee and:

(a) The owner of the property; or

(b) If the provisions of subsection 2 of NAC 361.596 are applicable, the owner or authorized
agent designated pursuant to that subsection.

3. The notice given pursuant to subsection 2
must:

(a) State the reason for the inability of the
county treasurer to issue the certificate;

(b) Describe any additional document or information
or state the amount of any additional payment required to approve the
assignment and state the date by which, pursuant to subsection 4, the document,
information or payment must be received by the county treasurer; and

(c) Be sent by first-class mail to the owner and
assignee at the mailing addresses set forth in the affidavit of authorization.

4. If notice is given by the county
treasurer as provided in subsections 2 and 3 and the county treasurer does not,
within 30 days after the date of the notice, receive from the owner or
assignee:

(a) The additional document, information or payment
required to approve the assignment; or

Ê as
applicable, the assignment shall be deemed to be denied. The county treasurer
shall give written notice of the denial in the manner provided for a notice
given pursuant to subsection 2 and return to the assignee the documents
received from the assignee and the payment tendered by the assignee.

1. If the assignment complies with the
requirements of NRS 361.7303 to
361.733, inclusive, and NAC 361.595 to 361.597,
inclusive, the county treasurer shall promptly issue a certificate of
assignment of the tax lien to the assignee.

2. The certificate of assignment must be on
a form approved by the Commission and must include, in addition to the
information required by NRS
361.7318:

(a) The name, mailing address and electronic mail
address of the assignee;

(b) The parcel number of the property;

(c) The street address of the property, if
applicable;

(d) The full amount of:

(1) All delinquent taxes assessed and owed
against the property for any preceding tax year;

(2) If any installment of the taxes assessed
against the property for the current tax year has not been paid, the total
amount of the taxes assessed against the property for the current tax year,
including, without limitation, the amount of any installment that has not yet
become due;

(3) Any applicable penalties, interest, fees
and costs; and

(4) If a certificate has been issued to the
county treasurer with respect to the property pursuant to NRS 361.570, any other amount
required to be paid pursuant to subsection 4 of that section and not otherwise
described in subparagraph (1), (2) or (3) of this paragraph;

(e) A statement certifying that the assignee has
paid the amount described in paragraph (d);

(f) A statement that the county treasurer has duly
received:

(1) An affidavit of authorization made by the
owner of the property;

(2) A copy of the separate written agreement
between the owner and the assignee; and

(3) A copy of the bond posted by the assignee,
affidavit of compliance or affidavit of exemption, as applicable,

Ê and that a
true and correct copy of each document so received is attached as an exhibit to
the certificate; and

(g) A statement that in consideration of the receipt
of the payment in full of the amount described in paragraph (d), the tax lien
is assigned and transferred to the assignee.

3. A true and correct copy of each of the
documents described in paragraph (f) of subsection 2 and received by the county
treasurer must be attached as an exhibit to the certificate.

(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

NAC 361.5968Effect of certificate of assignment. (NRS 360.090,
360.250)A
certificate of assignment of a tax lien does not:

1. Entitle the assignee to the assignment of
a tax lien for any tax year not enumerated in the affidavit of authorization;

2. Change the date upon which any unpaid
taxes become delinquent; or

3. If taxes assessed against the property or
any applicable penalties, interest, fees and costs are not paid:

NAC 361.597Release of tax lien after assignment. (NRS 360.090,
360.250)A
release of a tax lien issued by an assignee to the owner of the property must
be made on a form approved by the Commission, comply with the requirements of
subsection 3 of NRS 247.110 and
include, in addition to the information required by NRS 361.7326:

1. The name and mailing address of the
assignee;

2. The name and mailing address of the
owner;

3. The date of issuance of the release;

4. The street address of the property, if
applicable;

5. The name and address of the entity or
natural person who prepared the legal description of the property, if the
description is by metes and bounds;

6. A statement that all right, title and
interest of the assignee in the tax lien are released; and

7. The signature of the assignee or a
representative of the assignee, acknowledged before a notary public.

Ê and provide
that information to the county assessor of the county in which the property is
located.

2. If the Department determines that:

(a) Any property of an interstate or intercounty
nature has been erroneously designated as eligible for a general abatement, the
Department may appropriately revise that designation and transmit an
appropriately revised tax bill to the taxpayer.

(b) Any property valued pursuant to paragraph (b)
of subsection 1 of NRS 362.100
has been erroneously designated as eligible for a general abatement, the
Department may appropriately revise that designation and the county tax
receiver may transmit an appropriately revised tax bill to the taxpayer.

Ê If a change
in the designation of any property pursuant to this subsection results in an
increase in the liability of the taxpayer for property taxes, the Department
shall inform the taxpayer of the change in the designation of the property and
the reasons for that change.

(a) Receive claims for primary residential
abatements and residential rental abatements and identify each parcel or other
taxable unit of property for which such a claim is received; and

(b) Before delivering the tax roll to the county
tax receiver each year, determine whether each parcel or other taxable unit of
property designated on the tax roll is:

(1) Eligible for a primary residential
abatement;

(2) Eligible for a residential rental
abatement;

(3) Eligible for a general abatement; or

(4) Ineligible for any of those partial
abatements of property taxes.

2. A county assessor:

(a) Except as otherwise provided in NRS 361.773, may correct the tax
roll not later than June 30 of each year to indicate that a parcel or other
taxable unit of property is eligible for a primary residential abatement, a
residential rental abatement or a general abatement for that year.

(b) Shall notify the county tax receiver of each
claim for a primary residential abatement or residential rental abatement for
the current year which the county assessor receives after the tax roll has been
delivered to the county tax receiver. The county tax receiver shall process
such a claim for a primary residential abatement in accordance with NRS 361.773.

3. A county tax receiver shall calculate and
apply the appropriate amount of any:

(a) Primary residential abatement or residential
rental abatement to which a parcel or other taxable unit of property is determined
to be eligible; and

(b) General abatement, in accordance with the
applicable abatement percentage provided by the Department pursuant to NAC 361.605, to which a parcel or other taxable unit
of property is determined to be eligible.

4. If a county assessor or county tax
receiver determines that a parcel or other taxable unit of property has been
erroneously designated as eligible for a primary residential abatement, a
residential rental abatement or a general abatement, the county assessor may
appropriately revise that designation and the county tax receiver may transmit
an appropriately revised tax bill to the taxpayer. If a change in the
designation of any property pursuant to this subsection results in an increase
in the liability of the taxpayer for property taxes, the county assessor shall
inform the taxpayer of the change in the designation of the property and the
reasons for that change.

(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

NAC 361.606Claim for primary residential abatement: Form and contents;
execution; action by county assessor; change in ownership or occupation of
property. (NRS 360.090, 361.4722, 361.4723)

1. A claim for a primary residential
abatement must be:

(a) Submitted on a form provided by the county assessor
of the county in which the property is located; and

(b) Signed by:

(1) Any owner of record of the property;

(2) Any person of lawful age who is authorized
by an executed power of attorney to sign the claim on behalf of an owner of
record of the property;

(3) The legal guardian or conservator of an
owner of record of the property; or

(4) The executor or administrator of the
estate of an owner of record of the property.

2. The form for claiming a primary
residential abatement may require the claimant to state that:

(a) The claimant is the owner of the property;

(b) The property is a single-family residence;

(c) The property is the primary residence of the
owner of the property, exclusive of any other residence in Nevada;

(d) The property is not rented, leased or otherwise
made available for exclusive occupancy by any person other than the owner of
the property and members of the family of the owner of the property;

(e) The claimant agrees to notify the county
assessor if the property is no longer used as:

(1) A single-family residence; or

(2) The primary residence of the owner of the
property, exclusive of any other residence in Nevada; and

(f) The claim is affirmed and certified by the
owner of the property under any penalties provided by law.

3. The county assessor shall:

(a) If the county assessor determines it to be
necessary, verify whether the property is eligible for a primary residential
abatement.

(b) If the county assessor determines that the
property is not eligible for a primary residential abatement, determine whether
the property is eligible for a general abatement.

4. A claim for a primary residential
abatement may be amended to reflect changes in the ownership or occupation of
the property. If such a change occurs after July 1, the change must not be
indicated on either the secured or unsecured tax roll, as applicable, until the
next fiscal year.

1. For the purpose of determining the
eligibility of property for a primary residential abatement:

(a) A single-family residence which is the primary
residence of the owner shall be deemed to include any buildings or other
structures that are appurtenant to that residence, including, without
limitation, a detached garage, if the building or other structure:

(1) Is of a type which is typically associated
with a single-family residence;

(2) Exists for the use, enjoyment and benefit
of the occupants of the residence;

(3) Is not used in furtherance of any
business, except for the operation of a home business as provided in paragraph
(a) of subsection 5 of NRS 361.4723;
and

(4) Is not rented, leased or otherwise made
available for exclusive occupancy by any person other than the owner of the
residence and members of the family of the owner of the residence.

(b) If a single-family residence which is the
primary residence of the owner, including all appurtenant buildings and other
structures described in paragraph (a), is located on:

(1) More than one parcel of property; or

(2) One or more parcels of property otherwise
used for agricultural purposes,

Ê that
residence may be treated as a separate taxable unit.

2. If a taxable unit of real property
contains both:

(a) A single-family residence which is the primary
residence of the owner; and

(b) Other property used for agricultural,
commercial or other purposes,

Ê the county
assessor may determine the separate portions of that taxable unit which are
respectively described in paragraphs (a) and (b), and apply to each such
portion any appropriate partial abatement from property taxes.

1. A county assessor shall annually mail to
the owner of each residential rental dwelling in the county a written notice of
the right to claim a residential rental abatement.

2. A claim for a residential rental
abatement must be:

(a) Filed annually with the county assessor of the
county in which the property is located not later than June 15 of each year;
and

(b) Accompanied by an affidavit which states:

(1) That the amount of rent collected from
each of the tenants of the property is equal to or less than the applicable
fair market rent published by the United States Department of Housing and Urban
Development. For the purpose of determining the applicable fair market rent, a
studio apartment must be considered to be a single room.

(2) The greatest amount of rent charged a
tenant of the property for the period from April 1 of the year immediately
preceding the lien date for the current year until March 31 of the current
year.

3. The Department shall annually notify each
county assessor of:

(a) The amounts of the applicable fair market rents
for the current year, as published for March 31 of that year by the Department
of Housing and Urban Development, excluding the amounts of utility allowances.

(b) The amounts of applicable utility allowances,
based upon the information reported by the appropriate Nevada regional housing
authority to the Department of Housing and Urban Development.

4. For the purpose of determining the
eligibility of property for a residential rental abatement, the county assessor
shall compare:

(a) The greatest amount of rent charged a tenant of
the property for the period from April 1 of the year immediately preceding the
lien date for the current year until March 31 of the current year, excluding
any amount paid for utilities; and

(b) The amount of the applicable fair market rent
for the current year, as provided by the Department pursuant to subsection 3,
excluding the amount of the applicable utility allowance. For the purposes of
this section, the county assessor shall use as the applicable utility
allowance:

(1) The typical utility allowance for the
pertinent category of property, as provided by the Department pursuant to
subsection 3; or

(2) A utility allowance calculated by the
county assessor for the specific property from the information reported by the
appropriate Nevada regional housing authority to the Department of Housing and
Urban Development.

5. A residential rental dwelling is not
eligible for a residential rental abatement if the rent received for any rental
unit of the property for the period from April 1 of the year immediately
preceding the lien date for the current year until March 31 of the current
year, excluding any amount included in the rent for the payment of utilities,
exceeds the amount of the applicable fair market rent for the current year,
excluding the amount of the applicable utility allowance.

6. The owner of any property for which a
claim for a residential rental abatement is filed:

(a) Has the burden of proving that the property is
not transient lodging; and

(b) Must:

(1) Provide to the county assessor such
information as the county assessor requires to determine the eligibility of the
property for a residential rental abatement and to ascertain the continuing
eligibility of the property for a residential rental abatement; and

(2) Maintain accurate records in support of
that information and allow the county assessor to audit those records at any
time.

7. For the purposes of this section and NRS 361.4724, the Commission interprets
the term:

(a) “Residential rental dwelling” to mean a
residential dwelling:

(1) For which consideration is paid for its
temporary use and occupancy; or

(2) Which is occupied by a member of the
family of the owner of the dwelling for no consideration.

(b) “Transient lodging” to:

(1) Mean, except as otherwise provided in
subparagraph (2), any facility or structure, or any portion thereof, which is
occupied or intended or designed for occupancy and which is held out for use by
transient guests who pay rent for the temporary privilege of dwelling, lodging
or sleeping therein. For the purposes of this subparagraph, “facility or
structure” includes any hotel, resort hotel, motel, bed and breakfast, lodging
house, time-share project, vacation home, apartment house, recreational vehicle
park or campground, and any similar facility or structure.

(2) Exclude any:

(I) Hospital, sanitarium, medical clinic,
convalescent home, nursing home, home for aged persons, foster home or similar
facility operated for the care or treatment of human beings;

(II) Asylum, jail, prison, orphanage or
other facility in which human beings are detained and housed under legal
restraint; or

(III) Housing owned or controlled by an
educational institution and used exclusively to house students, faculty or
other employees of the institution.

1. For the purposes of NRS 361.4722, the value of any
centrally assessed property which is allocated and apportioned to a taxing
district shall be deemed to constitute a taxable unit of real or personal
property in that taxing district.

2. Property of an interstate or intercounty
company valued pursuant to NRS
361.320 which is not eligible for a general abatement for the current year
includes, without limitation:

(a) That portion of the unit valuation of such
property for which there was no allocation or apportionment within Nevada for
the immediately preceding year;

(b) New property placed on the unsecured tax roll
and classified as construction work in progress; and

(c) That portion of the unit valuation of such
property for which there is an increase in the cost indicator of value from the
immediately preceding year, unless it has already been reported to the
Department as construction work in progress and the taxpayer certifies that the
pertinent capital expenditures will be reported as part of construction work in
progress before being transferred to the accounting records of the company for
plant in service.

3. For the purposes of this section,
“construction work in progress” has the meaning ascribed to it in NAC 361.258.

(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

NAC 361.608Calculation of amount of abatement: Applicable amount of tax levy
for immediately preceding year and current year. (NRS 360.090,
361.4722, 361.4723, 361.4724)For the purpose of
calculating the amount of any general abatement, primary residential abatement
or residential rental abatement for the current year, the amount of the tax
levy that would have resulted for the immediately preceding year without the
application of any other tax abatements or exemptions must be compared to the
tax levy that would result for the current year without the application of any
other tax abatements or exemptions.

1. If any property is found pursuant to NRS 361.325, 361.767 or 361.769 to have partially or
entirely escaped taxation for a fiscal year:

(a) The property shall be deemed to be property for
which no assessed valuation was separately established for the fiscal year
immediately preceding that fiscal year; and

(b) Any general abatement, primary residential
abatement or residential rental abatement for which the property is eligible
for each fiscal year following the fiscal year for which the property escaped
taxation must be calculated as if the property had been on the tax roll for the
fiscal year for which the property escaped taxation.

2. If the valuation of any property is
adjusted pursuant to NRS 361.765
or 361.768 to correct a
clerical, typographical, mathematical or factual error, any general abatement,
primary residential abatement or residential rental abatement for which the
property is eligible for each fiscal year following the fiscal year for which
that correction of the valuation of the property is made must be calculated
and, if necessary, adjusted in conformity with the correct valuation of the
property.

(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

NAC 361.609Summary reports of property taxes billed on behalf of each taxing
entity. (NRS 360.090)A county
tax receiver shall, not later than:

1. September 1 of each year, submit to the
Department and each taxing entity a summary report of the total amount of
property taxes billed on behalf of each taxing entity for the current tax year
for property on the secured tax roll. The report must separately state for each
taxing entity:

(a) The total number of parcels or other taxable
units of property for which the property taxes were billed;

(b) The total assessed value of the property for
which the property taxes were billed;

(c) The total amount of the property taxes that would
have been billed if not for the application of any general abatement, primary
residential abatement or residential rental abatement;

(d) The total amount of any reduction in billable
property taxes as a result of the application of any general abatement, primary
residential abatement or residential rental abatement;

(e) The total amount of any reduction in billable
property taxes as a result of the application of any exemptions from taxation
other than a general abatement, a primary residential abatement or a
residential rental abatement;

(g) The total amount of any taxes exempted from
each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; and

(h) The total amount of property taxes actually
billed.

2. June 1 of each year, submit to the
Department and each taxing entity a summary report of the total amount of
property taxes billed on behalf of each taxing entity for the current tax year
for property on the unsecured tax roll. The report must separately state for
each taxing entity:

(a) The total assessed value of the property for
which the property taxes were billed;

(b) The total amount of the property taxes that
would have been billed if not for the application of any general abatement,
primary residential abatement or residential rental abatement;

(c) The total amount of any reduction in billable
property taxes as a result of the application of any general abatement, primary
residential abatement or residential rental abatement;

(d) The total amount of any reduction in billable
property taxes as a result of the application of any exemptions from taxation
other than a general abatement, a primary residential abatement or a residential
rental abatement;

1. Conducted primarily for profit, except
for any agricultural use, open-space use, residential use, institutional use,
recreational use or use as vacant land held for development; and

2. Any other use that does not constitute
any agricultural use, open-space use, residential use, institutional use,
recreational use or use as vacant land held for development.

(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

NAC 361.6101“Current year” defined. (NRS 360.090, 361.4722)“Current year” means the
fiscal year for which a determination of the application of the partial
abatement of taxes for any new parcel is being made.

NAC 361.61014“New parcel” defined. (NRS 360.090, 361.4722)“New parcel” means a
parcel for which a new or different assessor parcel number has been assigned
from the prior year as a result of the division of any previously existing
parcel or parcels, the combination of any previously existing parcels, or any
change in the configuration of any parcels or of lot size or lot boundaries, by
means of a parcel map, subdivision map, certificate of land division, long-term
lease, action of any governmental entity or any other means.

(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

NAC 361.61016“New parcel for development” defined. (NRS 360.090,
361.4722)“New
parcel for development” means each new parcel which is not eligible for the
partial abatement in the current year.

NAC 361.61026“Remainder parcel” defined. (NRS 360.090, 361.4722)“Remainder parcel” means
each new parcel which is eligible for the partial abatement in the current
year.

(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

NAC 361.61028“Residential use” defined. (NRS 360.090, 361.4722)“Residential use” means
use as a dwelling or for personal, family or household purposes, whether rented
to particular persons or not, including, without limitation, use as a
single-family detached housing unit, townhouse, condominium unit, mobile home
or multifamily unit. The term includes the use of lots in a residential
subdivision for which a final map has been recorded and on which residential
improvements will be constructed, but does not include the use of parcels which
are not yet divided into individual residential lots by the filing of a final
map.

(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

NAC 361.6103“Vacant land held for development” defined. (NRS 360.090,
361.4722)“Vacant
land held for development” means land which is held for investment or future
development and has not previously been held for residential use, commercial or
industrial use, institutional use or recreational use.

(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

NAC 361.61032Scope and purpose. (NRS 360.090, 361.4722)The provisions of NAC 361.61002 to 361.61038,
inclusive, set forth the methodology that must be followed to carry out the
provisions of subsection 2 of NRS
361.4722 in evaluating each new parcel for the purposes of applying the
partial abatement of taxes provided by that subsection.

1. Each new parcel must be separately
evaluated to determine whether there has been any change in the use of the
property that comprises the parcel.

2. A determination that there is a change in
the use of the property must be based on a finding that:

(a) The property was being used as vacant land held
for development as of the commencement of the prior year and:

(1) As the result of the recording of a
subdivision map creating individual lots for residential development, the
property is held for residential use as of the commencement of the current
year; or

(2) As the result of new construction on the
parcel sufficient to allow for an identification of the use of the property,
the property is in agricultural use, open-space use, residential use,
commercial or industrial use, institutional use or recreational use as of the
commencement of the current year; or

(b) The use of the property as of the commencement
of the current year for agricultural use, open-space use, residential use,
commercial or industrial use, institutional use or recreational use is
different from the use of the property as of the commencement of the prior
year.

3. If the use of the property:

(a) Has not changed, the parcel is a remainder
parcel.

(b) Has changed, the parcel is a new parcel for
development.

4. As used in this section, “use of the
property” means the principal use of the property for one of the following
purposes:

1. The partial abatement for a remainder
parcel must be calculated as follows:

(a) Determine the amount of net property taxes
attributable to the land area of and any improvements to the remainder parcel
for the prior year as provided in NAC 361.61038.

(b) Multiply the net property taxes determined in
accordance with subsection 1 by the abatement percentage applicable to the
remainder parcel for the current year.

(c) Add the amounts determined pursuant to
paragraphs (a) and (b). If the sum is:

(1) Less than the amount of taxes that would
have been assessed on the remainder parcel for the current year without the
abatement, the difference constitutes the amount of the partial abatement for
the remainder parcel for the current year.

(2) Greater than or equal to the amount of
taxes that would have been assessed on the remainder parcel for the current
year without the abatement, then there is no partial abatement for the
remainder parcel for the current year.

2. The maximum amount of property taxes
which may be levied on a remainder parcel for the current year must be
calculated as follows:

(a) Determine the amount of property taxes to be
added to the tax roll in the current year attributable to:

(1) An incremental change in land value
resulting from a change in the actual or authorized use of the remainder
parcel; or

(2) A new improvement to the remainder parcel,

Ê that would
not have been included in the calculation of the assessed value of the
remainder parcel for the prior year had a separate valuation for the remainder
parcel been established in the prior year.

(b) Add the amounts determined pursuant to
paragraph (a) and paragraphs (a) and (b) of subsection 1 to determine that
maximum amount.

1. Except as otherwise provided in
subsection 2, the amount of net property taxes attributable to the land area of
and any improvements to a remainder parcel for the prior year must be
determined as follows:

(a) Identify each of the parcels which contained
the land area of the remainder parcel in the prior year.

(b) Determine the pro rata percentage that the
remainder parcel’s land and improvements contributed to the assessed value of
each of the parcels identified in paragraph (a) for the prior year.

(c) Multiply the percentage determined in paragraph
(b) for each of the parcels identified in paragraph (a) by the total amount of
taxes levied, or which would have been levied but for any exemptions from
taxation, in the prior year on that parcel.

(d) The amount of net property taxes attributable
to the remainder parcel for the prior year is the sum of the products
determined pursuant to paragraph (c) for each of the parcels identified in
paragraph (a).

2. The owner of a remainder parcel may
appeal to the Nevada Tax Commission pursuant to NRS 361.4734 and any regulations
adopted to carry out that section to show that the method prescribed in
subsection 1 produces an inequitable result. Pursuant to such an appeal, the
Nevada Tax Commission may use an alternative method that provides an equitable
result.

3. As used in this section, “total amount of
taxes levied” means the lower of the total amount of property taxes assessed to
a parcel or the total amount of property taxes assessed as the result of a
final decision on an appeal, less the amount of any partial abatement of
property taxes applied to that parcel pursuant to NRS 361.4722, 361.4723 or 361.4724.

NAC 361.610425“Mining use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)“Mining use” means the
current employment of property for the development or extraction of any mineral
on or beneath the surface of land, including metal ores, oil, gas and other
hydrocarbons, and geothermal resources.

NAC 361.610435“On-site improvement” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)“On-site improvement”
means a physical change to the land area of any property which makes the site
ready for its intended use or development, such as grading or landscaping or
the addition of fencing, curbing, paving or walkways. The term does not
include:

1. Any off-site improvements, including, but
not limited to, sewer or drainage lines, utility hookups, sidewalks or roads
which are not located on the property; or

NAC 361.610455“Single-family residential use” defined. (NRS 360.090,
361.4722, 361.4723, 361.4724)“Single-family residential
use” means the current employment of property as a single-family residence, as
that term is defined in NRS
361.4723.

(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

NAC 361.61046“Vacant land” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)“Vacant land” means any
land other than land on which there is an improvement sufficient to allow the
identification of or establish actual use.

1. Except as otherwise provided in
subsection 2, set forth the methodology required to carry out the provisions of
NRS 361.4722, 361.4723 and 361.4724 in determining the amount
of any property taxes to be excluded from each partial abatement and added to
the tax roll for the current fiscal year attributable to any incremental
increase in the assessed value of any property from the immediately preceding
fiscal year as a result of any improvement to or change in the actual or
authorized use of the property.

2. Do not apply to any property of an
interstate or intercounty nature regarding which the Commission establishes the
valuation thereof for assessment purposes pursuant to subsection 1 of NRS 361.320 or NRS 361.321.

(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

NAC 361.61047Determination of improvement to property. (NRS 360.090,
361.4722, 361.4723, 361.4724)Any determination by a
county assessor or the Department, as applicable, that there is any improvement
to the subject property must be based on a finding that:

1. There is an appurtenance erected upon or
affixed to the land, including any on-site improvement, in the current fiscal
year that did not exist in the immediately preceding fiscal year; or

2. The subject property consists in whole or
in part of a community unit in a common-interest community and there is:

(a) A common element in that common-interest
community; or

(b) An appurtenance erected upon or affixed to a
common element in that common-interest community, including any on-site
improvement,

1. Any determination by a county assessor or
the Department, as applicable, that there is any change in the actual use of
the subject property must be based on a finding that, upon the commencement of
the immediately preceding fiscal year:

(a) The property was vacant land and, as the result
of new construction on the property sufficient to allow for an identification
of the use of the property, the primary use of the property upon the
commencement of the current fiscal year is agricultural use, commercial use,
industrial use, institutional use, mining use, multifamily residential use,
open-space use, recreational use or single-family residential use;

(b) The primary use of the property as vacant land,
agricultural use, commercial use, industrial use, institutional use, mining
use, multifamily residential use, open-space use, recreational use or
single-family residential use is different from the primary use of the property
as vacant land, agricultural use, commercial use, industrial use, institutional
use, mining use, multifamily residential use, open-space use, recreational use
or single-family residential use upon the commencement of the current fiscal
year; or

(c) The property was assessed and taxed as part of
a qualified subdivision but is no longer part of that qualified subdivision
upon the commencement of the current fiscal year. The amount of any partial
abatement that applies to the property must be calculated as if the property
had not been assessed and taxed as part of a qualified subdivision during the
immediately preceding or any other prior fiscal year. As used in this
paragraph, “qualified subdivision” has the meaning ascribed to it in NAC 361.117.

2. If any improvements from which the actual
use of the subject property was determined for the purposes of subparagraph (2)
of paragraph (a) of subsection 1 of NRS
361.227 are destroyed or otherwise removed from the property, the county
assessor or the Department, as applicable, shall consider whether the actual
use of the property, as determined from the destroyed or removed improvements,
still exists for the current fiscal year.

3. If the subject property has more than one
use, the county assessor may determine a single use for each individual portion
of the property that is being used for only one use for the purpose of
determining whether there is any change in the actual use of that portion of
the property.

1. Any determination by a county assessor or
the Department, as applicable, that there is any change in the authorized use
of the subject property must be based on a finding that:

(a) Between the commencement of the immediately
preceding fiscal year and the commencement of the current fiscal year, there
has been a change in the legal or governmental restrictions on the use of the
property;

(b) The change in the legal or governmental
restrictions on the use of the property allows the property to be put to a use
that was not an allowed use upon the commencement of the immediately preceding
fiscal year; and

(c) Either:

(1) The property was vacant land upon the
commencement of both the immediately preceding fiscal year and the current
fiscal year; or

(2) All the improvements to the property were
removed from the property before the commencement of the current fiscal year.
No finding may be made pursuant to this subparagraph if the taxpayer shows to
the satisfaction of the county assessor or the Department, as applicable, that
a reasonably diligent effort is being made to build new improvements to the
property that would provide for the same use of the property as was authorized
when the former improvements were removed.

2. If a combination of applications or
approvals is required for any changes in the legal or governmental restrictions
on the use of the subject property, no finding may be made pursuant to
subsection 1 until all such applications and approvals have been obtained.

3. For the purposes of each partial
abatement, no change in the authorized use of any property may be determined to
occur as a result of any change by a governmental entity in:

(a) The categorization or classification of the
zoning designation for the property if there is no change in the allowed use of
the property; or

1. If a county assessor or the Department,
as applicable, does not make a determination in compliance with the provisions
of NAC 361.61047, 361.610475
or 361.61048 that there has been any improvement
to or change in the actual or authorized use of the subject property, no amount
of property taxes may be added to the tax roll for the current fiscal year
attributable to any incremental increase in the assessed value of the property
from the immediately preceding fiscal year as a result of any improvement to or
change in the actual or authorized use of the property.

2. If a county assessor or the Department,
as applicable, makes a determination in compliance with the provisions of NAC 361.61047, 361.610475
or 361.61048 that there has been any improvement
to or change in the actual or authorized use of the subject property, the
county assessor or the Department, as applicable, in cooperation with the
county treasurer, must:

(a) Make a current year calculation for the
property as provided in subsection 3;

(b) Make a base year calculation for the property
as provided in subsection 4; and

(c) Apply the amount determined pursuant to
subsection 3 or 4, whichever is less, as the amount of property taxes to be
added to the tax roll for the current fiscal year attributable to any
incremental increase in the assessed value of the property from the immediately
preceding fiscal year as a result of any improvement to or change in the actual
or authorized use of the property.

3. A current year calculation for the
subject property must be made as follows:

(a) Determine the taxable value of the property in
accordance with the provisions of NRS
362.095, paragraph (b) of subsection 1 of NRS 362.100 and NAC 361.106 to 361.139,
inclusive, as applicable, for the current fiscal year based on any improvement
to or change in the actual or authorized use of the property from the
immediately preceding fiscal year.

(b) Determine the taxable value of the property in
accordance with the provisions of NRS
362.095, paragraph (b) of subsection 1 of NRS 362.100 and NAC 361.106 to 361.139,
inclusive, as applicable, for the current fiscal year as if there had not been
any improvement to or change in the actual or authorized use of the property
from the immediately preceding fiscal year.

(c) Subtract the amount determined pursuant to
paragraph (b) from the amount determined pursuant to paragraph (a). If the
remainder is:

(1) Zero or a negative number, the amount
determined pursuant to this subsection shall be deemed to be zero.

(2) A positive number:

(I) Convert that amount into an assessed
value by multiplying that amount by 0.35; and

(II) Multiply that assessed value by the
applicable rate of property taxes.

4. A base year calculation for the subject property
must be made as follows:

(a) Determine the taxable value for the current
fiscal year of any new improvements made on the land of the subject property,
as determined for that fiscal year pursuant to NAC
361.61047 in accordance with the provisions of paragraph (b) of subsection
1 of NRS 361.227.

(b) Determine the full cash value of the land of
the subject property in accordance with the provisions of paragraph (a) of
subsection 1 of NRS 361.227, NRS 362.095 and paragraph (b) of
subsection 1 of NRS 362.100, as
applicable, for the base year as if any improvement to or change in the actual
or authorized use of the property, as determined for the current fiscal year
pursuant to NAC 361.61047, 361.610475 or 361.61048,
had occurred before the base year.

(c) Determine the full cash value of the land of
the subject property in accordance with the provisions of paragraph (a) of
subsection 1 of NRS 361.227, NRS 362.095 and paragraph (b) of
subsection 1 of NRS 362.100, as
applicable, for the base year without considering any improvement to or change
in the actual or authorized use of the property determined for the current
fiscal year pursuant to NAC 361.61047, 361.610475 or 361.61048.

(d) Subtract the amount determined pursuant to
paragraph (c) from the amount determined pursuant to paragraph (b). If the
remainder is:

(1) Zero or a negative number, the amount
determined pursuant to this paragraph shall be deemed to be zero.

(2) A positive number, successively increase
that number in a compound manner by the abatement percentage applicable to the
property for each fiscal year after the base year to and including the current
fiscal year.

(e) Add the amounts determined pursuant to
paragraphs (a) and (d).

(f) Convert the amount determined pursuant to
paragraph (e) into an assessed value by multiplying that amount by 0.35.

5. In carrying out the provisions of this
section, a county assessor and the Department, as applicable, shall ensure that
the amount of any property taxes excluded from any partial abatement and added
to the tax roll for the current fiscal year attributable to any incremental
increase in the assessed value of any property from the immediately preceding
fiscal year as a result of any improvement to or change in the actual or
authorized use of the property:

(a) Is due solely to an incremental increase in the
assessed value of the property which is directly attributable to the
improvement to or change in the actual or authorized use of the property;

(b) Is not due to any increase in the assessed
value of the property as a result of any other cause, including, but not
limited to, a general appreciation in the market value of property in the area;
and

(c) Is assessed only to the specific property for
which the assessed valuation has increased as a result of any improvement to or
change in the actual or authorized use of that property.

6. As used in this section:

(a) “Abatement percentage” means, with regard to
any property for which the owner thereof is entitled to a partial abatement
from taxation pursuant to:

NAC 361.61049Notification of determination that will result in exclusion of
any taxes from partial abatement. (NRS 360.090, 361.4722, 361.4723, 361.4724)A county assessor shall
include with each notice of assessed valuation or amended notice of assessed
valuation provided to a taxpayer or an owner of property pursuant to NRS 361.300 a statement of whether
any determination has been made that will result in the exclusion of any taxes
from any partial abatement that applies to the subject property attributable to
any incremental increase in the assessed value of the property from the
immediately preceding fiscal year as a result of any improvement to or change
in the actual or authorized use of the property. If the statement indicates
that such a determination has been made, the statement must:

1. Set forth that determination;

2. Specify the amount of that incremental
increase in the assessed value of the property; and

3. Describe the manner in which detailed
instructions may be obtained for appealing the matter to the county board of
equalization or the Commission.

NAC 361.61058“Party” defined. (NRS 360.090, 361.4734)“Party” means a person,
government, governmental agency or political subdivision of a government
entitled to appear in a proceeding of the Commission. The term includes an
intervener.

NAC 361.61064Notice of appeal of determination of county assessor or
Department. (NRS 360.090, 361.4734)

1. A petitioner who wishes to appeal a
determination of a county assessor described in paragraph (a) of subsection 1
of NRS 361.4734 or a
determination of the Department described in paragraph (b) of subsection 1 of NRS 361.4734 must file a written
notice of appeal with the Commission on a form provided by the Department
within the period prescribed in subsection 2 of NRS 361.4734.

2. In addition to the information required
by subsection 4 of NAC 360.045, the
notice of appeal must include:

(a) The name and mailing address of the petitioner
and the petitioner’s contact person, if any;

(b) The telephone number for daytime business hours
and facsimile number of the petitioner and the petitioner’s contact person, if
any;

(c) The electronic mail address, if available, of
the petitioner and the petitioner’s contact person, if any;

(d) The tax year being appealed;

(e) A description of the property and the
assessor’s parcel number or the identifying number of the property that is the
subject of the appeal;

(f) A copy of the decision of the county assessor
or the Department for the tax year in question on the property that is the
subject of the appeal; and

(g) A statement of the relief requested.

3. Not later than 10 business days after
receiving the notice of appeal of a determination issued pursuant to paragraph
(a) of subsection 1 of NRS 361.4734,
the Department shall provide a copy of the notice of appeal to the county
assessor.

1. After receipt of a notice of appeal filed
in compliance with subsection 2 of NRS
361.4734 and NAC 361.61064, the Commission
will assign a hearing officer to hear the appeal.

2. The hearing officer shall conduct the
hearing in the manner prescribed in NAC
360.100 to 360.155, inclusive.

3. Notice of the hearing must be provided in
the manner prescribed in NAC 360.095.

4. A person who wishes to intervene in a
hearing must comply with the provisions set forth in NAC 360.070.

5. At any evidentiary hearing, the
petitioner and the county assessor or the Department may exercise the rights
set forth in NAC 360.080.

6. Appearances and representation of the
parties must be made in the manner prescribed in NAC 360.085.

7. After the close of the evidentiary
hearing, the hearing officer shall file with the Commission within 60 calendar
days a proposed order that sets forth the findings and conclusions of the
hearing officer and the reasons and bases for those findings and conclusions.
The proposed order must be served on each party.

8. The findings of fact and conclusions of
law made by a hearing officer are not required to be included in a stipulated
agreement.

1. Except as otherwise provided in this
subsection, a party may file a written objection to the proposed order with the
Commission within 20 calendar days after receipt of the proposed order. The
written objection must state with particularity the issues presented, the
points of law or fact which are relied on and the relief requested. The
Commission may allow a party, upon good cause shown, to file a written
objection with the Commission more than 20 days after receipt of a proposed
order.

2. A party who files a written objection
shall serve a copy of its objection on all parties.

3. Except as otherwise provided in this
subsection, a party may reply to the written objection within 15 days after
receipt of the written objection. A reply must be served on all parties. The
Executive Director may grant an extension of time for the responding party to
reply upon good cause shown.

4. If no party files a written objection
with the Commission pursuant to subsection 1, the Commission will place the
proposed order on the appropriate agenda for its next scheduled meeting for
action by the Commission.

5. If a party files a written objection to
the proposed order with the Commission within 20 days after receipt of the
proposed order or if the Commission chooses to take any action concerning the
review of the proposed order, other than to remand the proposed order to the
hearing officer for clarification of the order, the Commission will hold a
hearing on the proposed order. The Commission will provide to the parties at
least 15 days’ notice of the hearing, unless the parties waive the notice in
writing or on the record before the Commission.

(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

NAC 361.6107Hearing before Commission: Order of argument. (NRS 360.090,
361.4734)In a
hearing held before the Commission pursuant to NAC
361.61068, the order in which argument will ordinarily be received from the
parties is:

1. Orientation by staff;

2. Argument by the petitioner;

3. Argument by interveners;

4. Argument by any other party; and

5. Rebuttal by the petitioner.

(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

NAC 361.61072Hearing before Commission: Basis on record before hearing
officer; determination that record is inadequate. (NRS 360.090,
361.4734)The
hearing held before the Commission pursuant to NAC
361.61068 must be based on the record made before the hearing officer. If
the Commission determines the record is inadequate, the Commission may remand
the matter to the hearing officer for further proceedings or open the record
and hear new evidence.

(Added to NAC by Com. on Local Gov’t Finance by R043-09,
6-30-2010, eff. 7-1-2010)

NAC 361.6123“Revised tax base” defined. (NRS 361.4732, 361.4733)“Revised tax base” means
the amount of ad valorem taxes which, after a parcel or other taxable unit of
real property is annexed to a taxing entity, would have been levied on the
property for the immediately preceding fiscal year if the annexation had
occurred 1 year earlier, based upon the tax rates that would have applied to
the property for the immediately preceding fiscal year if the annexation had
occurred 1 year earlier and without regard to any exemptions from taxation that
applied to the property for the immediately preceding fiscal year but do not
apply to the property for the current fiscal year.

(Added to NAC by Com. on Local Gov’t Finance by R043-09,
6-30-2010, eff. 7-1-2010)

(Added to NAC by Com. on Local Gov’t Finance by R043-09,
6-30-2010, eff. 7-1-2010)

NAC 361.6127“Year of annexation” defined. (NRS 361.4732, 361.4733)“Year of annexation” means
the first fiscal year in which a taxing entity that annexes a parcel or other taxable
unit of real property is entitled to levy or require the levy on its behalf of
any ad valorem taxes on that property as a result of that annexation of the
property.

(Added to NAC by Com. on Local Gov’t Finance by R043-09,
6-30-2010, eff. 7-1-2010)

NAC 361.613Events constituting annexation. (NRS 361.4732, 361.4733)For the purpose of
carrying out the provisions of NRS
361.4732 and NAC 361.6115 to 361.6135, inclusive, the annexation of a parcel or
other taxable unit of real property to a taxing entity includes:

1. The inclusion of the property within the
boundaries of an existing taxing entity as a result of a change in the
boundaries of that taxing entity;

2. The inclusion of the property within the
boundaries of a new taxing entity; and

3. The assumption by a taxing entity of the
functions of another taxing entity that:

(a) Was entitled to levy or require the levy on its
behalf of any ad valorem taxes on the property during the immediately preceding
fiscal year; and

(b) Has been dissolved.

(Added to NAC by Com. on Local Gov’t Finance by R044-06,
eff. 5-4-2006; A by R043-09, 6-30-2010, eff. 7-1-2010)

1. Except as otherwise provided in
subsections 2 and 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the
annexation of a parcel or other taxable unit of real property to a taxing
entity, the tax receiver of the county in which that property is located after
that annexation shall, when making any calculations pursuant to the provisions
of this chapter for the year of annexation of that property and each subsequent
fiscal year which require a determination of:

(a) The entity-adjusted parcel tax rates applicable
to the property for the fiscal year immediately preceding the year of
annexation:

(1) Disregard the entity-adjusted parcel tax
rate for that prior fiscal year of any taxing entity which, as a result of that
annexation, is no longer entitled to levy or require the levy on its behalf of
any ad valorem taxes on the property; and

(2) Include as an entity-adjusted parcel tax
rate applicable to that property for that prior fiscal year:

(I) The ad valorem tax rate for that
prior fiscal year of the taxing entity annexing that property; or

(II) If that taxing entity did not exist
in that prior fiscal year, the ad valorem tax rate of that taxing entity for
the year of annexation.

(b) The combined overlapping adjusted tax rate
applicable to the property for the fiscal year immediately preceding the year
of annexation:

(1) Exclude from that determination the
entity-adjusted parcel tax rate for that prior fiscal year of any taxing entity
which, as a result of that annexation, is no longer entitled to levy or require
the levy on its behalf of any ad valorem taxes on the property; and

(2) Include in that determination, as an
entity-adjusted parcel tax rate applicable to that property for that prior
fiscal year:

(I) The ad valorem tax rate for that
prior fiscal year of the taxing entity annexing that property; or

(II) If that taxing entity did not exist
in that prior fiscal year, the ad valorem tax rate of that taxing entity for
the year of annexation.

2. Except as otherwise provided in
subsection 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the
annexation of a parcel or other taxable unit of real property to a taxing
entity, the tax receiver of the county in which that property is located after
that annexation shall:

(a) Calculate the revised tax base for that
property as follows:

(1) Subtract the combined overlapping adjusted
tax rate which actually applied to the property for the fiscal year immediately
preceding the year of annexation, as determined without regard to the
provisions of subsection 1, from the combined overlapping adjusted tax rate
applicable to that property for that prior fiscal year, as determined in
accordance with the provisions of subsection 1;

(2) Divide the result obtained pursuant to
subparagraph (1) by the combined overlapping adjusted tax rate which actually
applied to the property for the fiscal year immediately preceding the year of
annexation, as determined without regard to the provisions of subsection 1;

(3) Multiply the result obtained pursuant to
subparagraph (2) by the actual amount of ad valorem taxes applicable to the
property for the fiscal year immediately preceding the year of annexation, as
determined after the deduction of any partial abatement of taxes that applied
to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any
tax exemptions that applied to the property for that prior fiscal year; and

(4) Add the result obtained pursuant to
subparagraph (3) to the actual amount of ad valorem taxes applicable to the
property for the fiscal year immediately preceding the year of annexation, as
determined after the deduction of any partial abatement of taxes that applied
to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any
tax exemptions that applied to the property for that prior fiscal year.

(b) Except as otherwise required to carry out the
provisions of NRS 361.4729, use
the revised tax base for that property, as calculated pursuant to paragraph
(a), in lieu of the amount otherwise required to be determined pursuant to
paragraph (a) of subsection 1 of NRS
361.4722, paragraph (a) of subsection 2 of NRS 361.4722, paragraph (a) of
subsection 1 of NRS 361.4723 or
paragraph (a) of subsection 1 of NRS
361.4724 for the purpose of determining the amount of any partial abatement
of taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the year of
annexation.

3. The provisions of this section must not
be applied in any manner that:

1. The tax receiver of a county and the
Department, as applicable, shall ensure that the amount of any property taxes
which are excluded from any partial abatement of taxes provided pursuant to NRS 361.4722, 361.4723 or 361.4724 and added to the tax roll
for the current fiscal year as a result of the annexation of a parcel or other
taxable unit of real property to a taxing entity:

(a) Is due solely to an incremental increase in the
rate of property taxes applicable to the property which is directly
attributable to the annexation of the property to the taxing entity; and

(b) Is not due to any increase in the assessed
value of the property as a result of any other cause, including, but not
limited to, a general appreciation in the market value of property in the area.

2. The tax receiver of a county shall:

(a) Provide on a website or other Internet site, if
any, that is operated or administered by or on behalf of the county or tax
receiver:

(1) A description of each taxing district and
taxing entity in the county; and

(2) The ad valorem tax rate of each taxing
entity in the county for the current fiscal year and the immediately preceding
2 fiscal years; and

(b) Make readily available to any person, upon
request:

(1) A description of each taxing district and
taxing entity in the county; and

(2) The ad valorem tax rate of each taxing
entity in the county for the current fiscal year and each prior fiscal year
which commenced on or after July 1, 2004.

3. The Department shall provide on its
website or other Internet site concerning property taxes a worksheet for
performing the calculations required to carry out the provisions of NAC 361.6115 to 361.6135,
inclusive.

(Added to NAC by Com. on Local Gov’t Finance by R043-09,
6-30-2010, eff. 7-1-2010)

1. “LEED Green Building Rating System” means
those portions of the Leadership in Energy and Environmental Design Green
Building Rating System developed by the U.S. Green Building Council that are
adopted by the Director of the Office of Energy or otherwise deemed to be
appropriate for use in this State pursuant to NRS 701.217 and the
regulations adopted pursuant thereto.

2. A copy of the LEED Green Building Rating
System may be obtained at no cost from the U.S. Green Building Council, 1015
18th Street, N.W., Suite 508, Washington, D.C. 20036, or on the Internet at http://www.usgbc.org/.

(Added to NAC by Comm’n on Econ. Development by R220-05,
eff. 9-18-2006)

1. A person may apply to the Commission for
a partial abatement of the taxes on real property payable each year pursuant to
chapter 361 of NRS for property which
has a building or other structure that:

(a) Is not a public building or structure; and

(b) Is not a single-family house, multifamily
structure with three stories or fewer above grade, or a mobile or manufactured
home.

2. The application must be made on a form
prescribed by the Executive Director of the Commission.

3. The application:

(a) Must include a letter of verification from the
Director of the Office of Energy which states that the real property for which
the abatement is sought has a building or other structure that meets or exceeds
the certification requirements for the abatement as set forth in NRS 361.0775 and NAC 361.620 and which sets forth the number of LEED
points earned;

(b) Must specify the desired term and amount of the
abatement in accordance with the table set forth in NAC
361.620; and

(c) If the real property for which the abatement is
sought is located in a redevelopment area created pursuant to chapter 279 of NRS, must include proof
that the application has been submitted to the redevelopment agency or
legislative body with jurisdiction over the redevelopment area.

(Added to NAC by Comm’n on Econ. Development by R220-05,
eff. 9-18-2006)

NAC 361.6195Consideration of application at meeting of Commission; notice of
meeting. (NRS 361.0775)

1. The Commission will consider an
application for the partial abatement of property taxes:

(a) At the next regularly scheduled meeting of the
Commission following receipt of the application if the application is received
by the Commission at least 15 working days before the meeting; or

(b) At the next regularly scheduled meeting of the
Commission following the meeting described in paragraph (a) in all other cases.

2. The Commission will, not less than 10
working days before a meeting at which it will consider an application for the
partial abatement of property taxes, provide written notice of the date, time
and location of the meeting to each local government and redevelopment agency
within whose jurisdiction the real property that is the subject of the
application is located.

(Added to NAC by Comm’n on Econ. Development by R220-05,
eff. 9-18-2006)

1. Except as otherwise provided in
subsection 2, if the Commission determines that the application satisfies all
requirements of NAC 361.617 to 361.620, inclusive, the Commission will grant a
partial abatement of the taxes on real property payable each year pursuant to chapter 361 of NRS in accordance with the
following table:

LEED
Level

LEED-NC
Points

LEED-EB
Points

Term
of Abatement

Amount
of Abatement

Silver

33
to 36

40
to 45

10
years

35
to 42 percent

5
to 7 years

50
percent

37
or 38

46
or 47

10
years

43
to 48 percent

8
or 9 years

50
percent

Gold

39
or more

48
or more

10
years

49
or 50 percent

2. The Commission will reduce the partial
abatement of real property taxes authorized by subsection 1 to the extent
necessary to ensure that:

(a) If the real property for which the partial
abatement is sought is located in a redevelopment area created pursuant to chapter 279 of NRS, the partial abatement
authorized by subsection 1 together with any partial abatement of taxes to
which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 does not exceed 82
percent of the assessed value of the property; and

(b) The partial abatement authorized by subsection
1 does not result in the inability of a local government to pay debt service on
any obligation or of a redevelopment agency created pursuant to chapter 279 of NRS to pay any outstanding
indebtedness.

3. If the Commission grants a partial
abatement of real property taxes, the abatement applies beginning July 1 of the
next following fiscal year, unless the applicant and the governing body of the
local government whose tax revenue will be affected by the abatement agree upon
a different date and the governing body provides written authorization for the
different date.

4. Upon granting a partial abatement of real
property taxes, the Commission will issue a certificate of eligibility for the
abatement that sets forth all parcel numbers of the affected property and the
percentage of the taxes on real property payable each year pursuant to chapter 361 of NRS and duration for which
the abatement is granted.

5. As used in this section, unless the
context otherwise requires:

(a) “LEED-EB” means the LEED Green Building Rating
System for Existing Buildings, Upgrades, Operations and Maintenance; and

(b) “LEED-NC” means the LEED Green Building Rating
System for New Construction & Major Renovations.

(Added to NAC by Comm’n on Econ. Development by R220-05,
eff. 9-18-2006)

EQUALIZATION BY COUNTY BOARD OF EQUALIZATION

NAC 361.622Scope; power of county boards to adopt additional requirements. (NRS 361.340)

1. NAC 361.622
to 361.645, inclusive, are the minimum requirements
governing procedures before each county board of equalization and elected
officers serving that board.

2. With the prior approval of the State
Board of Equalization, each county board of equalization may:

(a) Require petitioners to attach additional
information to the petition form; and

(b) Adopt more detailed rules of procedure.

[St. Bd. of Equalization, Intro. to Reg. No. 2, eff. 12-29-75;
A 1-1-77; A and renumbered as Intro. to Reg. No. 1, 10-14-77; + Intro. to Reg.
No. 3, eff. 12-29-75; A and renumbered as Intro. to Reg. No. 2, 10-14-77]—(NAC
A 1-6-84)

NAC 361.623List of members of additional panel. (NRS 361.340)If an
additional panel is added to a county board of equalization, the county clerk
shall send to the Secretary of the State Board of Equalization a list of the
names and addresses of the members and the chair of the panel. The list must be
sent by January 25.

(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

NAC 361.624Duty to equalize within geographic vicinity, whole county;
limitation on adjustment of result of cyclic reappraisal. (NRS 361.340)The
county board of equalization shall seek to equalize taxable valuation within
the geographic vicinity of the subject property, as well as the whole county.
Unequal valuations resulting solely from the effect of cyclic reappraisal
authorized by law does not justify an adjustment to a valuation.

(a) In addition to giving notice as required by chapters 241 and 361 of NRS, post a notice for each
meeting of the county board of equalization at the meeting room and the clerk’s
office.

(b) Publish a notice in a newspaper of general
circulation in the county at least 5 days before the first meeting by using a
display advertisement which is no smaller than 2 by 4 inches and includes the
deadline for filing petitions.

2. The county clerk or a representative of
the county clerk shall attend all meetings of each panel of the county board of
equalization.

1. A county board of equalization shall hear
each complaint properly brought before it and make an independent determination
of the valuation of the property assessed. The State Board of Equalization will
remand to a county board any complaint which was denied because it was too
complex or based on a method of appraisal required by law or for which evidence
of taxable value was not reviewed.

2. A county board shall give each petitioner
sufficient time to submit the petitioner’s evidence. No complaint may be denied
solely on the basis of insufficient time in which to hear the evidence.

(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

NAC 361.628Summary of appraisal data. (NRS 361.340)Each
county assessor shall prepare and submit to the county board of equalization a
summary of appraisal data for each property which is the subject of a complaint
alleging that taxable value is in excess of full cash value. The summary must:

1. Include the method used to value the
property and the sales price of comparable property which supports the
valuation; and

2. Be accompanied by a map of the area
showing the location of the property and all comparable property.

NAC 361.634Notices. (NRS 361.340)The
county clerk shall maintain adequate proof of mailing or personal delivery of
all letters or notices scheduling appearances before the county board of
equalization. The proof may be a certificate of mailing or other reliable
evidence. The letter or notice must advise the petitioner he or she is to pay
for a court reporter and transcript if a transcript is desired and that one
copy of the transcript must be provided to the county and one provided to the
State Board of Equalization. A courtesy copy of such letters or notices must be
delivered to the county assessor.

1. Mark, record and file all exhibits
submitted to the county board of equalization. A list of exhibits must be
included on each petition at the place designated therefor.

2. Prepare complete minutes of each hearing,
including any action taken by the board and the specific reasons for that
action.

3. Complete each petition form to reflect
the action taken by the board and the specific reasons for that action.

4. Submit petitions, exhibits, minutes,
certificates of mailing and other material deemed pertinent by the county board
of equalization to the Secretary of the State Board of Equalization no later
than the fourth Monday in February.

NRS 361.340,
on which the date in subsection 4 depends, was amended twice in that respect
between 1977 and the time when NAC 361.638 was
originally codified: See Stats. 1979 at page 1 and Stats. 1981 at page 795. The
date in subsection 4 was changed by the reviser to accommodate the later of
these amendments and NRS 361.380.

NAC 361.6405Determination of percentage of obsolescence. (NRS 361.340,
361.375)The
State Board of Equalization will or a county board of equalization shall, in
fixing a percentage of obsolescence to be deducted from the taxable value of
any improvements subject to its jurisdiction, consider the total value of land
and improvements to determine whether taxable value exceeds full cash value.

(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

NAC 361.641Deduction of percentage of obsolescence when taxable value
exceeds cash value. (NRS 361.340, 361.375)If it is determined that
the computed total taxable value of any property exceeds its full cash value,
the State Board of Equalization will or a county board of equalization shall
instruct the county assessor to annually deduct the percentage of obsolescence
fixed by the board from the computed total taxable value of the improvements
until the property is physically reappraised.

1. If a county board of equalization reduces
the assessed valuation of any property, the record of the case must contain the
reasons for the reduction including, when applicable:

(a) An incorrect measurement of square footage.

(b) The reduction of the valuation of that class of
property.

(c) A deduction for depreciation or obsolescence.

(d) Evidence of comparative sales or fair economic
income which proves that the taxable value of the property exceeded its full
cash value.

2. If the State Board of Equalization
determines that the record of any case on appeal from a county board of
equalization is inadequate, the Board will remand the case to the county board
before October 1. If the county board holds a hearing anew on the complaint, it
must be held and a decision must be rendered within 30 days after the remand.

(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

NAC 361.645Appeal of decision to State Board of Equalization: Record of
proceedings before county board. (NRS 361.340)

1. Within 15 calendar days after a county
clerk receives notice from the State Board of Equalization that an appeal of a
decision of the county board of equalization has been docketed for a hearing at
the State Board, the county clerk shall:

(a) Prepare a record of the proceedings before the
county board in the decision on appeal, including a general index in a format
prescribed by the State Board of Equalization. The index must clearly identify
each exhibit, paper, report or other documentary, audio or video evidence
included in the record.

(b) Certify the record as complete except as
shortened pursuant to subsection 3.

(c) Transmit the certified record to the State
Board of Equalization.

(d) Serve a copy of the general index on each party
to the appeal.

2. If a petitioner has delivered a certified
transcript of the hearing before the county board to the county clerk pursuant
to NRS 361.365, the clerk shall
include a copy of the transcript in the record. The transcript delivered to the
clerk must be prepared by a certified court reporter.

3. Except as otherwise provided in this
subsection, the record submitted to the State Board of Equalization must be
complete. The record may be shortened:

(a) By written stipulation of all parties to the
appeal; and

(b) By the omission of duplicate copies of any
exhibit, paper, report or other documentary evidence submitted at the hearing
before the county board. The clerk shall include original documents rather than
copies of all documentary evidence, if possible.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.652“Equalize property valuations” defined. (NRS 361.375,
361.395)“Equalize
property valuations” means to ensure that the property in this State is
assessed uniformly in accordance with the methods of appraisal and at the level
of assessment required by law.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.653“Interested person” defined. (NRS 361.375, 361.395)“Interested person” means
an owner of any relevant property, as indicated in the records of the county
assessor of the county in which the property is located or, if the Commission
establishes the valuation of the property, as indicated in the records of the
Department.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.654“Ratio study” defined. (NRS 361.375, 361.395)“Ratio study” means an
evaluation of the quality and level of assessment of a class or group of
properties in a county which compares the assessed valuation established by the
county assessor for a sampling of those properties to:

1. An estimate of the taxable value of the
property by the Department or an independent appraiser; or

2. The sales price of the property,

Ê as appropriate.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.655“Secretary” defined. (NRS 361.375, 361.395)“Secretary” means the
Secretary of the State Board.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

1. The State Board hereby adopts by
reference the Standard on Ratio Studies, July 2007 edition, published by
the International Association of Assessing Officers. The Standard on Ratio
Studies may be obtained from the International Association of Assessing
Officers, 314 West 10th Street, Kansas City, Missouri 64105-1616, or on the
Internet at http://www.iaao.org/store, for the price of $10.

2. If the publication adopted by reference
in subsection 1 is revised, the State Board will review the revision to
determine its suitability for this State. If the State Board determines that
the revision is not suitable for this State, the State Board will hold a public
hearing to review its determination and give notice of that hearing within 30
days after the date of the publication of the revision. If, after the hearing,
the State Board does not revise its determination, the State Board will give
notice that the revision is not suitable for this State within 30 days after
the hearing. If the State Board does not give such notice, the revision becomes
part of the publication adopted by reference pursuant to subsection 1.

1. During each annual session of the State
Board, the State Board will hold one or more hearings to:

(a) Review the tax roll of each county, as
corrected by the county board;

(b) Determine whether the property in this State
has been assessed uniformly in accordance with the methods of appraisal and at
the level of assessment required by law;

(c) Determine whether the taxable values specified
in the tax roll of any county must be increased or decreased to equalize
property valuations in this State; and

(d) Take such additional actions as it deems
necessary to carry out the provisions of NRS 361.395.

2. Subject to the time limitations specified
in NRS 361.380, the State Board
may adjourn its annual session from time to time until it has completed its
duties pursuant to NRS 361.395
for the applicable fiscal year.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.660Information to be considered by State Board. (NRS 361.375,
361.395)In
determining whether the property in this State has been assessed uniformly in
accordance with the methods of appraisal and at the level of assessment
required by law, the State Board will consider:

1. The tax roll of each county, as corrected
by the county board and filed with the Secretary pursuant to NRS 361.390;

3. The results of any relevant ratio study
conducted by the Department pursuant to NRS 361.333;

4. The results of any relevant audit of the
work practices of a county assessor performed by the Department pursuant to NRS 361.333 to determine whether a
county has adequate procedures to ensure that all property subject to taxation
is being assessed in a correct and timely manner;

5. Any relevant evidence submitted to a
county board or the State Board pursuant to NRS 361.355;

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.661Provision of certain information by county assessor upon request
of State Board. (NRS 361.375, 361.395)

1. In addition to the information contained
in the tax roll filed with the Secretary pursuant to NRS 361.390, a county assessor
shall, upon the request of the State Board, provide any information the State
Board deems necessary to carry out the provisions of NRS 361.395, including, without
limitation:

(a) The assessor’s parcel number for any parcel of
property.

(b) The taxable value and assessed value determined
for any land, improvements or personal property before and after any
adjustments to those values by the county board.

(c) The value per unit determined for any land or
personal property before and after any adjustments to that value by the county
board.

(d) Land use codes for the county.

(e) Market areas in the county.

(f) The year in which any improvements were built.

(g) The classification of quality for any
improvements.

(h) The size of any improvements.

(i) The size of any lot.

(j) The zoning of any property.

(k) The date of the most recent sale of any
property and the sales price of the property.

2. If the State Board desires a county
assessor to provide any information pursuant to this section, the State Board
will require the Department to send to the county assessor by regular mail a
notice of the request which describes the information requested and the format
and type of media in which the information is requested. The county assessor
shall submit the information to the State Board, in the format and type of
media requested, within 10 business days after the date of the postmark on the
notice of the request or such a longer period as the State Board, upon the
request of the county assessor, may allow.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.662Ratio studies and other statistical analyses: Performance upon
request of and evaluation by State Board. (NRS 361.375, 361.395)

1. Upon the request of the State Board, the
Department or county assessor shall perform and submit to the State Board any
ratio study or other statistical analysis that the State Board deems
appropriate to assist it in determining the quality and level of assessment of
any class or group of properties in a county.

2. Each ratio study or other statistical
analysis requested by the State Board pursuant to this section must:

(a) Be performed in accordance with the provisions
of the Standard on Ratio Studies adopted by reference in NAC 361.658, except any specific provision of the Standard
on Ratio Studies that conflicts or is inconsistent with the laws of this
State or any regulations adopted by the State Board or the Commission;

(b) Identify the statistical population that is the
subject of the ratio study or statistical analysis, which may be divided into
two or more strata according to neighborhood, age, type of construction or any
other appropriate criterion or set of criteria; and

(c) Include an adequate sampling of each stratum
into which the statistical population that is the subject of the ratio study or
statistical analysis is divided, and such statistical criteria as may be
required, to indicate an accurate ratio of assessed value to taxable value and
an accurate measure of equality in assessment.

3. The State Board will determine the
appropriate time frame from which sales of property may be considered in any
ratio study or statistical analysis requested pursuant to this section. If the
State Board determines that the appropriate time frame is any period other than
the 36 months immediately preceding July 1 of the year before the applicable
lien date, the State Board will provide the reasons for that determination to
the Department or county assessor.

4. The State Board will evaluate each ratio
study and statistical analysis performed pursuant to this section to determine
whether the ratio study or statistical analysis reliably indicates the quality
and level of assessment for the applicable class or group of properties. In
making that determination, the State Board will consider:

(a) Whether the Department or county assessor used
a sufficient number of sales or appraisals in performing the ratio study or
statistical analysis;

(b) Whether the samples of property selected by the
Department or county assessor adequately represent the total makeup of the
applicable class or group of properties;

(c) Whether the Department or county assessor
correctly adjusted the samples of property for market conditions;

(d) Whether any variations among sales or appraisal
ratios affect the reliability of the ratio study or statistical analysis; and

(e) Any other matters the State Board deems
relevant.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.663Investigation and evaluation by Department of procedures and
operation of county assessor. (NRS 361.375, 361.395)Before making any
determination concerning whether the property in a county has been assessed
uniformly in accordance with the methods of appraisal required by law, the
State Board will require the Department to:

1. Conduct a systematic investigation and
evaluation of the procedures and operations of the county assessor; and

2. Report to the State Board its findings
concerning whether the county assessor has appraised the property in the county
in accordance with the methods of valuation prescribed by statute and the
regulations of the Commission.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.664Preliminary finding that class or group of properties was not
assessed uniformly in accordance with methods of appraisal and at level of
assessment required by law: Scheduling and notice of hearing. (NRS 361.375,
361.395)

1. If the State Board, after considering the
information described in NAC 361.660, makes a
preliminary finding that any class or group of properties in this State was not
assessed uniformly in accordance with the methods of appraisal and at the level
of assessment required by law, the State Board will:

(a) Schedule a hearing concerning that preliminary
finding on a date which is not less than 10 business days after the notice of
the hearing is mailed pursuant to paragraph (b).

(b) Require the Department to send by registered or
certified mail a notice of the hearing to the county clerk, county assessor,
district attorney and chair of the county board of each county in which any of
the property is located. A legal representative of the county may waive the
receipt of such notice.

(c) Require the Secretary to provide a copy of the
notice of the hearing to the Commission and to the board of county
commissioners of each county in which any of the property is located.

2. The notice of the hearing must state:

(a) The date, time and location of the hearing;

(b) The information on which the State Board relied
to make its preliminary finding that the class or group of properties was not
assessed uniformly in accordance with the methods of appraisal and at the level
of assessment required by law; and

(c) The proposed order of the State Board.

3. The Department shall include with each
notice provided pursuant to paragraph (b) of subsection 1, and upon the request
of any interested person, provide to that person, a copy of any analysis or
other information considered by the State Board in making its preliminary
finding that the class or group of properties was not assessed uniformly in
accordance with the methods of appraisal and at the level of assessment
required by law.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.665Hearing on preliminary finding: Order of State Board; additional
hearing following order for reappraisal. (NRS 361.375, 361.395)

1. Upon the completion of a hearing
scheduled pursuant to NAC 361.664, the State Board
will issue:

(a) An order stating that the State Board will take
no action on the matter and specifying the reasons that no action will be
taken;

(b) An order referring the matter to the Commission
for the Commission to take such action within its jurisdiction as the
Commission deems to be appropriate;

(c) An order requiring the reappraisal by the
county assessor of a class or group of properties in a county; or

(d) Except as otherwise provided in this paragraph,
if a ratio study or other statistical analysis performed pursuant to NRS 361.333 or NAC 361.662 indicates with a confidence level of at
least 95 percent that the median assessment ratio for any class or group of
properties is less than 32 percent or more than 36 percent, an order increasing
or decreasing the assessed valuation of that class or group of properties by
such a factor as the State Board deems to be appropriate to cause the median
assessment ratio to be not less than 32 percent and not more than 36 percent.
The State Board will not issue such an order if the application of the factor
would cause the coefficient of dispersion calculated for the class or group of
properties to fail to meet the recommendations set forth in the Standard on
Ratio Studies adopted by reference in NAC 361.658.

2. If the State Board orders the reappraisal
of a class or group of properties pursuant to this section, the State Board
will:

(a) Schedule an additional hearing to determine
whether to issue an order:

(1) Stating that the State Board will take no
further action on the matter and specifying the reasons that no further action
will be taken;

(2) Referring the matter to the Commission for
the Commission to take such action within its jurisdiction as the Commission
deems to be appropriate; or

(3) Increasing or decreasing the taxable
valuation of the class or group of properties in accordance with the
reappraisal or in such other manner as the State Board deems appropriate to
equalize property valuations.

(b) Require the Department to send by registered or
certified mail, not less than 10 business days before the date of the
additional hearing, notice of the date, time and location of the hearing to the
county clerk, county assessor, district attorney and chair of the county board
of the county in which the property is located. A legal representative of the
county may waive the receipt of such notice.

(c) Require the Secretary to notify the Commission
and the board of county commissioners of the county in which the property is
located, of the date, time and location of the hearing.

3. Each order issued pursuant to this
section must include a statement of any pertinent findings of fact made by the
State Board. If the State Board issues an order pursuant to this section:

(a) Requiring the reappraisal of a class or group
of properties, the order must specify:

(1) The class or group of properties affected;

(2) The purpose and objectives of the
reappraisal; and

(3) The procedures required for the
reappraisal, including the particular methods of appraisal prescribed by the
regulations of the Commission.

(b) Increasing or decreasing the valuation of any
class or group of properties, the order must specify:

(1) The class or group of properties affected;
and

(2) The amount of or the formula to be used to
calculate the amount of that increase or decrease.

4. Upon the issuance of any order pursuant
to this section:

(a) The Department shall send a copy of the order:

(1) By certified mail to the county assessor
of each affected county; and

(2) By regular mail to the county clerk and
chair of the county board of each affected county; and

(b) The Secretary shall provide:

(1) A copy of the order to the Commission; and

(2) Any certification and notice required to
carry out the provisions of NRS
361.405.

5. As used in this section, “assessment
ratio” means the ratio of assessed value to taxable value.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

1. The State Board will require the Department
to place on the Internet website maintained by the Department, not less than 10
business days before the date of each hearing scheduled pursuant to NAC 361.664 or 361.665, a
copy of the notice of the hearing and of the agenda for the meeting at which
the State Board will conduct the hearing.

2. If the State Board proposes to issue an
order increasing the valuation of any class or group of properties at any
hearing scheduled pursuant to NAC 361.664 or 361.665, the State Board will require the Department
to provide to each interested person the notice of the hearing required by
subsection 2 of NRS 361.395. If
the notice is not provided to an interested person by personal service and the
mailing address of that person is not available, the Department must send the
notice of the hearing by registered or certified mail to the address of the
relevant property or, if the interested person has designated a resident agent
pursuant to chapter 77 of NRS, the
address of that resident agent as it appears in the records of the Secretary of
State. For the purposes of subsection 2 of NRS 361.395, the State Board
construes the term “interested person” to have the meaning ascribed to it in NAC 361.653.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

(a) The State Board will receive testimony under
oath from interested persons.

(b) The county assessor or his or her
representative, the representative of the county board and a representative of
the board of county commissioners of each county in which any of the property
that is the subject of the hearing is located may:

(1) Provide additional information and
analysis in support of or in opposition to any proposed order of the State
Board; and

(2) Show cause why the State Board should not
increase or decrease the valuation, or require a reappraisal, of the pertinent
class or group of properties in the county.

3. A hearing scheduled pursuant to NAC 361.664 or 361.665 may
be held by means of a video teleconference between two or more locations if the
video technology used at the hearing provides the persons present at each
location with the ability to hear and communicate with the persons present at
each other location.

4. The presiding member of the State Board
may exclude any disruptive person from the hearing room.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

NAC 361.668Order of State Board increasing or decreasing valuation of property:
Duties of county assessor and Department. (NRS 361.375, 361.395)If the State Board orders
any increase or decrease in the valuation of any property in a county pursuant
to NAC 361.665:

1. The county assessor of the county shall,
on or before June 30 immediately following the issuance of the order or such a
later date as the State Board may require, file with the Department the
assessment roll for the county, as adjusted to carry out that order; and

2. The Department shall, on or before August
1 immediately following the issuance of the order or such a later date as the
State Board may require:

(a) Audit the records of the county assessor of the
county to the extent necessary to determine whether that order has been carried
out; and

(b) Report to the State Board its findings
concerning whether the county assessor has carried out that order.

(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,
eff. 10-1-2010)

1. “Assessor’s parcel number” means the
number assigned by a county assessor to each piece of real property separately
owned as it appears on the county assessment roll.

2. “Authorized agent” means a person who is
authorized by a party to represent him or her in a proceeding before the State
Board. The term includes an attorney.

3. “Business entity” includes a corporation,
a limited partnership or a limited-liability company.

4. “Conclusion of law” means a determination
of the law applicable to a finding of fact.

5. “Contact person” means a person
designated by a party to receive communications concerning a proceeding before
the State Board.

6. “County board” means a county board of
equalization.

7. “Day” means a calendar day.

8. “Direct appeal” means an appeal from an
assessment by a county assessor, the Department or the Commission directly to
the State Board without appearing before or requesting relief from a county
board. The term includes an appeal authorized in NRS 361.360, 361.403, 361.769, 361A.273 or 362.135.

9. “Finding of fact” means a brief statement
of the determination of issues of fact supported by evidence in the record or
matters officially noticed.

10. “Identifying number” means the number
assigned to each piece of personal property separately owned as represented by
the county assessment rolls.

11. “Party” means a person, government,
governmental agency or political subdivision of a government entitled to appear
in a proceeding of the State Board. The term includes an intervener.

12. “Secretary” means the Secretary of the
State Board who is the Executive Director of the Department.

13. “Staff” means the staff of the
Department. The term includes the Attorney General and the duly appointed
deputies of the Attorney General when acting as legal advisers to the
Department pursuant to NRS 228.110.

1. Informal communications must be addressed
or delivered to the Secretary.

2. Informal communications from the staff or
State Board must be signed by the responsible staff or member of the State
Board.

3. Each communication must be limited to one
subject and contain the name and address of the communicant and the appropriate
assessor’s parcel number or legal description of any property pertaining to the
subject of the communication.

1. “Intervener” means a person, government,
governmental agency or political subdivision of a government, other than an
original party to a proceeding, who has been granted leave to intervene in a
proceeding pursuant to NAC 361.692.

2. “Petitioner” means a party who initiates
or commences an administrative proceeding before the State Board pursuant to
the provisions of chapter 361 of NRS.

3. “Respondent” means a party who responds
to an administrative proceeding initiated or commenced by a petitioner.

1. A person, government, governmental agency
or political subdivision of a government, other than an original party to any
proceeding, who is directly and substantially affected by the proceeding must
secure an order from the Secretary or the State Board granting leave to
intervene before being allowed to participate. For the purposes of review by a
court or an appeal, leave to intervene in any matter or proceeding is not a
finding or determination of the Secretary or the State Board that the party
will or may be a party aggrieved by any ruling, order or decision.

2. A petition for leave to intervene must be
in writing and clearly identify the proceeding in which intervention is sought.
The petition must include all the information required of a petition for a
direct appeal pursuant to NAC 361.7012 and contain
a clear and concise statement of the direct and substantial interest of the
intervener in the proceeding, stating the manner in which the intervener will
be affected by the proceeding and outlining the matters relied upon by him or
her as a basis for the petition for leave to intervene. If affirmative relief
is sought, the petition must contain a clear and concise statement of the
relief sought and the basis for that relief, together with a statement as to
the nature and quantity of evidence the intervener will present if his or her
petition is granted.

3. A petition for leave to intervene must be
filed with the Secretary and served on each party of record not less than 15
days before the date set for the commencement of the hearing.

4. If a petition for leave to intervene
shows a direct and substantial interest in the subject matter of the proceeding
or any part of the proceeding and does not unduly broaden the issues, the Secretary
or the State Board may grant leave to intervene or otherwise appear and
participate in the proceeding with respect to the matters set forth in the
petition, subject to any reasonable conditions that may be prescribed.

5. If it appears during the course of a
proceeding that an intervener has no direct or substantial interest in the
proceeding, and that the public interest does not require his or her
participation in the proceeding, the State Board may dismiss the intervener
from the proceeding.

NAC 361.698Qualifications of attorneys. (NRS 361.375, 361.385)If a party chooses to be
represented by an attorney, the attorney must be one who is admitted to
practice and in good standing before the highest court of any state of the
United States.

[St. Bd. of Equalization, Practice Rule 27, eff. 10-14-77]

NAC 361.700Limitations on representation of parties and appearance as expert
witness by former employees of Department or Attorney General. (NRS 361.375,
361.385)

1. No former employee of the Department or
member of the Attorney General’s staff may, at any time after severing his or
her employment with the Department or the Attorney General, appear, except with
the written permission of the State Board, in a representative capacity on
behalf of other parties in a proceeding in which he or she previously took an
active part as a representative of the State Board or Department.

2. No former employee of the Department may
at any time after severing his or her employment with the Department, appear,
except with the written permission of the State Board, as an expert witness on
behalf of other parties in a proceeding in which he or she previously took an
active part in the investigation or preparation as a representative of the
Department.

NAC 361.701Petition for appeal of final decision of county board. (NRS 361.375)

1. A person entitled to appeal the final
decision of a county board to the State Board pursuant to NRS 361.360 must file a petition
requesting the State Board to hear his or her appeal.

2. The petition must be on the form
prescribed by the State Board and must include:

(a) The name and mailing address of the petitioner
and the petitioner’s contact person, if any;

(b) The telephone number for daytime business hours
and facsimile number, if available, of the petitioner and the petitioner’s
contact person, if any;

(c) The electronic mail address, if available, of
the petitioner and the petitioner’s contact person, if any;

(d) The tax years being appealed;

(e) The assessor’s parcel number or identifying
number of the property on which the petitioner is appealing the valuation;

(f) The name of the county board, the hearing or
case number, and the date the case was heard by the county board;

(g) The name and mailing address of the respondent
if the petition is filed by the county assessor or the Department;

(h) The taxable value established by the county
assessor as set forth on the secured or unsecured tax roll and the current
taxable value determined by the county board, if different, on which the
assessment of the property is based;

(i) A statement that the petitioner has read the
petition and believes the contents to be true, followed by the person’s
signature, or the signature of the authorized agent, if any; and

(j) A brief statement of the relief sought or the
specific taxable value sought for each component of the parcel such as land,
improvements or personal property.

3. The State Board will provide a form of
the petition to each county assessor and county clerk. The State Board will,
and the county assessor and county clerk shall, make available a copy of the
form to any person.

1. A person entitled to file a direct appeal
must file a petition with the State Board requesting the State Board to hear
his or her appeal.

2. The petition must be on the form
prescribed by the State Board and must include:

(a) The name and mailing address of the petitioner
and the petitioner’s contact person, if any;

(b) The telephone number for daytime business hours
and facsimile number, if available, of the petitioner and the petitioner’s
contact person, if any;

(c) The electronic mail address, if available, of
the petitioner and the petitioner’s contact person, if any;

(d) The tax years being appealed;

(e) The assessor’s parcel number or other
identifying number of the property being appealed;

(f) The roll value established by the county
assessor or the Department, as applicable;

(g) The name and mailing address of the respondent
if the petition is filed by a county assessor or the Department; and

(h) A statement that the petitioner has read the
petition and believes the contents to be true, followed by the person’s
signature, or the signature of the authorized agent, if any.

3. The State Board will annually provide a
form of the petition to the Department, and each county assessor, who shall
provide a copy of the form to any person upon request.

4. In addition to the information required
pursuant to subsection 2, a petitioner must submit:

(a) A statement reciting the facts, reasons and
statutory basis relied upon to support the claim that the State Board should
order a change in the taxable value or classification of the subject property;

(b) All evidence upon which the petition is based
and which supports the claims therein;

(c) A copy of the final tax assessment notice for
the year in question on the property that is the subject of the appeal; and

(d) A statement of the relief sought.

Ê This
information must be submitted on the date of filing of the petition, if
available, and if not available on the date of filing, not later than 15 days
before the date established for the hearing.

5. If the appeal is from a valuation
established pursuant to NRS 361.320
or 361.325, the petition must be
filed not later than January 15 of the year immediately following the year in
which the valuation was made.

1. The State Board will acknowledge the
receipt of each petition in writing.

2. The Secretary shall examine each petition
upon receipt.

3. If the Secretary’s examination reveals
that:

(a) The petition is untimely filed; or

(b) It appears that the State Board lacks
jurisdiction to hear the appeal,

Ê the Secretary
shall recommend to the State Board that it order the appeal to be dismissed.
The recommended order must be placed on the consent agenda of the next meeting
of the State Board for which public notice pursuant to NRS 241.020 has not yet been given,
and the Secretary shall notify the petitioner, or the petitioner’s authorized
agent, of the time and place of the meeting at which the recommended order will
be considered.

4. If the Secretary’s examination reveals
that:

(a) The petition is timely filed;

(b) The appeal appears to be within the
jurisdiction of the State Board; and

Ê the Secretary
shall assign a case number to the appeal, place the appeal on the State Board’s
hearing docket and notify the petitioner and respondent that the case has been
docketed for a hearing.

5. The Secretary shall, for each docketed
case:

(a) Establish a case file;

(b) As each petition, exhibit, report, paper,
pleading or other documentary evidence is received, mark it with the case number
and place it in the case file; and

(c) If the appeal is from the final decision of a
county board, notify the county clerk that the case has been docketed for a
hearing and request the transmission of a certified copy of the record as set
forth in NAC 361.645.

1. If two or more docketed cases present
substantially the same issues of fact, law or valuation, the State Board may,
on its own motion or upon the request of a party, consolidate the cases for
purposes of a hearing or written decision.

2. The State Board may move to consolidate
cases at any time. A request for consolidation from a party must be filed with
the State Board and served on all other parties not later than 30 days before
the date established for the hearing.

3. A party who objects to the proposed
consolidation of his or her case may request that his or her case be heard
separately. The State Board will not proceed with a consolidated hearing until
after it has ruled on the request for a separate hearing.

1. A petitioner who desires to be
represented by an authorized agent must notify the State Board in writing. The
notice may be filed with the State Board at any time before the commencement of
the hearing. The State Board will accept a notice filed by facsimile
transmission, but the original document must be filed with the State Board
before the commencement of the hearing.

2. Except as otherwise provided in this
section, the written notification must be on the form prescribed by the State
Board. The notice must include:

(a) The date the authorization statement is executed;

(b) The specific parcels or assessments covered by
the authorization or a statement that the agent is authorized to represent the
petitioner on all parcels and assessments located in Nevada or in a specific
county in Nevada;

(c) A statement to the effect that the agent is
authorized to sign and file petitions in the specific calendar year in which
the petition is filed and that the agent is authorized to represent the
petitioner in all related hearings and matters; and

(d) Contact information, including the telephone
number and address of the petitioner.

3. The notification must be signed by:

(a) The petitioner or, if the petitioner is a
business entity, by an officer or authorized employee of the business entity;
and

(b) The authorized agent.

4. If an authorized agent required to comply
with NRS 361.362 to represent a
petitioner before a county board wishes to represent the petitioner in an
appeal to the State Board, the State Board will accept a copy of the written
notice of authority filed with the county board as the notice required pursuant
to this section so long as the other requirements of this section are met.

(Added to NAC by St. Bd. of Equalization by R029-05,
eff. 6-28-2006)

NAC 361.702Notice of hearing; duties of county assessor or representative of
county assessor. (NRS 361.375)

1. The State Board will give reasonable
notice of any hearing held before it to each party or the authorized agent of a
party at the address of each of those persons as those addresses appear in the
records of the Department.

2. The State Board will notify the
appropriate county assessor of a hearing relating to any property in his or her
county or which may have a direct effect upon his or her county. The county
assessor or a representative of the county assessor shall:

(a) Attend any hearing specified in this
subsection, unless otherwise directed by the State Board; and

NAC 361.703Briefs, memoranda and other written explanations. (NRS 361.375)

1. The State Board may, at any time, require
a party to submit a brief, memorandum or other written explanation. The State
Board will prescribe:

(a) The time for filing;

(b) The number of copies that must be filed with
the State Board; and

(c) The parties that must be served, if any.

2. If the State Board does not require
submission of a brief, memorandum or other written explanation, a party may
submit such a written explanation on his or her own initiative. Unless the
State Board otherwise directs, the written explanation must be filed with the
State Board and served on the other parties at least 20 days before the date
established for the hearing.

3. A party may respond in writing to a
brief, memorandum or other written explanation filed by another party. Unless
the State Board otherwise directs, the written explanation must be filed with
the State Board and served on the other parties not later than 10 days before
the date established for the hearing.

4. A party served with a response to a
brief, memorandum or other written explanation may reply in writing. Unless the
State Board otherwise directs, the written explanation must be filed with the
State Board and served on the other parties not later than 3 days after service
of the response.

5. A party must not include in or attach to
his or her brief, memorandum or other written explanation an exhibit, paper,
report or other documentary evidence that is included in the record submitted
to the State Board.

6. A brief, memorandum or other written
explanation filed with the State Board pursuant to this section may be filed
electronically, but the State Board may require a party to file the original
document.

7. Unless otherwise provided by the State
Board, the Secretary may perform any administrative function of the State Board
set forth in this section.

(Added to NAC by St. Bd. of Equalization by R029-05,
eff. 6-28-2006)

NAC 361.705Motions by parties; action by State Board on its own motion. (NRS 361.375)

1. A party may make a motion orally during a
hearing or in writing.

2. A motion must state with particularity
the relief or order sought and identify the reason or authority pursuant to
which the motion is made.

3. A written motion must be filed with the
State Board and served on all parties not later than 20 days before the date
established for the hearing.

4. A party against whom a motion is directed
may respond to the motion:

(a) Orally, if the motion is made during the
hearing; or

(b) In writing, if the motion is made before the
hearing. A written response must be filed with the State Board and served on
all parties within 10 days after service of the motion.

5. A party who has made a motion in writing
and been served with a written response may, within 7 days after service of the
response, reply to the response in a writing filed with the State Board and
served on all parties.

6. The State Board may, for good cause, take
action on its own motion. Unless its motion is made orally during the hearing,
the State Board will serve each party with notice of its intent to take action
and the reasons therefore. A party who receives the State Board’s notice of
intent and wishes to object to it must file his or her objection in writing
with the State Board within 10 days after service of the notice. The State
Board’s notice of intent must advise a party of his or her right to file a
written objection.

2. If the property the valuation of which is
the subject of a hearing is owned by more than one person, the appearance of
any owner or the person who filed the petition shall be deemed the appearance
of the party.

3. If a party is a business entity, it may
appear by any officer or employee or by an authorized agent.

4. At the time and place set for the
hearing, if a party fails to appear, the State Board may:

(a) Proceed with the hearing;

(b) Dismiss the proceeding with or without
prejudice; or

(c) Recess the hearing for a period to be set by
the State Board to enable the party to attend.

1. Subject to the restrictions imposed by NRS 360.240, the Secretary may, on
his or her own initiative or at the request of a party, issue a subpoena
requiring the attendance of a witness for the purpose of taking the testimony
of the witness orally before the State Board or compelling the production of
books, papers or other documents.

2. A petitioner or respondent desiring a
subpoena must submit an application in writing to the Secretary stating the
reasons why the subpoena is requested. If the application is for a subpoena for
the production of books, papers or other documents, the application must
identify, as clearly as may be, the books, papers or other documents desired.

3. The application must be filed with the
Secretary and served on all parties at least 20 days before the date
established for the hearing.

4. The Secretary, not later than 5 days
after he or she receives an application for a subpoena, shall:

(a) Grant the application and issue the subpoena;

(b) Modify the application and issue the subpoena;
or

(c) Deny the application.

5. The person to whom the subpoena is
directed may request in writing that the Secretary modify or quash the
subpoena. The Secretary shall grant this request if he or she determines that
the subpoena is unreasonable or oppressive.

6. If the Secretary issues a subpoena at the
request of a party, the party must arrange for service of the subpoena and bear
the expense of such service.

7. If the Secretary denies the request of a
party for a subpoena, the party may appeal the denial to the State Board.

NAC 361.720Official notice of State Board. (NRS 361.375)The
State Board may take official notice of the following matters:

1. Rules, regulations, official reports,
decisions and orders of the Commission, the State Board or any agency of the
State.

2. Matters of common knowledge and technical
or scientific facts of established character.

3. Official documents, if pertinent, when
properly introduced into the record of formal proceedings by reference if
proper and definite reference to the document is made by the party offering it
and it is published and generally circulated so that all of the parties of
interest at the hearing have an opportunity to examine it and present rebuttal
evidence.

4. Matters which may be judicially noticed
by the courts of the State.

NAC 361.721Format, execution and contents of documents. (NRS 361.375)All
petitions, pleadings, briefs, correspondence, notices and other written
documents filed with the State Board must be on white paper that is 8 1/2 by 11
inches in size and must be legibly written, printed or typewritten on one side
of the paper only. Each document must be signed by the party, or authorized
agent of the party, submitting it and must include the current mailing address
and telephone number of the submitter. Documents submitted after the assignment
of a case number pursuant to NAC 361.7014 must
include the case number assigned.

(Added to NAC by St. Bd. of Equalization by R029-05,
eff. 6-28-2006)

NAC 361.723Filing and receipt of documents; admission of late document into
evidence. (NRS 361.375)

1. Any petition, pleading, brief,
correspondence, notice or other written document required or authorized to be
filed with the State Board may be filed in person or by facsimile machine,
United States mail or third-party delivery service.

2. A document filed in person or by
facsimile machine must be received by the State Board not later than 5 p.m. on
the last day for filing the document set forth in the applicable statute or
regulation. The State Board will stamp each document filed with the date and
time it is received. A document is presumed to have been received at the date
and time shown on the stamp.

3. Except as otherwise provided in this
subsection, a document filed by mail or third-party delivery service is timely
filed if it is deposited with the post office or delivery service, correctly
addressed, postage prepaid and postmarked not later than the last day for filing
the document set forth in the applicable statute or regulation. A postmark
provided by a postage meter does not establish that a document is timely filed.

4. If the last day set forth in a statute or
regulation for the performance of an act falls on a Saturday, Sunday or legal
holiday, the act is timely if it is performed on the next business day. For the
purposes of this section, the performance of an act includes, without
limitation, filing a document with the State Board and serving a document on a party.

5. The State Board will not admit into
evidence a document that is not timely filed as set forth in this section
except upon a motion for its admission pursuant to NAC
361.705.

1. A document that is required to be served
on another party may be served on the party or authorized agent of the party.

2. A document that is required to be served
on a party may be served in person or by regular mail.

3. If service is made by mail, the document
must be deposited in the post office, properly addressed to the person being
served, with postage prepaid, not later than the date set forth in the
applicable regulation or order of the State Board.

4. With all documents required to be served,
an acknowledgment of service or substantially the following certificate must be
included:

CERTIFICATE OF SERVICE

I hereby certify that I have this day
served the foregoing document upon all parties of record in this proceeding (by
delivering a copy thereof in person to .........................) (by mailing a
copy thereof, properly addressed, with postage prepaid to
.........................).

Dated at this ............. day of
the month of ........... of the year .........

NAC 361.726Additional information and appraisal. (NRS 361.375)The
State Board will order any additional information it deems necessary to
determine the correct taxable value of any property under consideration and, if
necessary, order the Department’s appraisers to view or appraise the property
and to prepare for the State Board an estimate of its value or other relevant
testimony and evidence.

NAC 361.729Testimony before State Board: Authority to testify; person who
unlawfully acts as appraiser of real estate. (NRS 361.375)

1. Any person may testify before the State
Board on behalf of a party.

2. If a person testifying before the State
Board represents to the State Board that he or she is an appraiser of real estate
but has not obtained a certificate, license or permit required by chapter 645C of NRS, the State Board
will, unless the circumstances of the case otherwise require, give the person’s
testimony the same weight given to the testimony of a person who is not an
appraiser.

3. If a person specified in subsection 2
receives or expects to receive any form of compensation for an analysis,
opinion or conclusion concerning the nature, quality, value or use of property
the value of which is before the State Board, the State Board will inform the
person that:

(a) It is unlawful to act or assume to act as an
appraiser of real estate in this State without first obtaining the appropriate
certificate, license or permit pursuant to chapter 645C of NRS; and

(b) The State Board may notify the Real Estate
Division of the Department of Business and Industry of his or her conduct.

4. Upon informing a person pursuant to
subsection 3, the State Board may notify the Real Estate Division of the
Department of Business and Industry of the conduct specified in that
subsection.

(Added to NAC by St. Bd. of Equalization by R018-97,
eff. 12-19-97; A by R029-05, 6-28-2006)

NAC 361.731Transcripts. (NRS 361.375)If a
party wishes to obtain a transcript of any hearing conducted before the State
Board, the party must:

1. Provide a reporter, if a reporter is not
provided by the State Board for the hearing;

2. Pay for the transcript or obtain a copy
from the reporter provided by the State Board at the party’s expense; and

3. Provide a copy of the transcript to the
Secretary, if requested.

(Added to NAC by St. Bd. of Equalization by R018-97,
eff. 12-19-97; A by R029-05, 6-28-2006)

NAC 361.733Direct appeal: Rights of petitioner, respondent and staff. (NRS 361.375)During
any hearing of a direct appeal, the petitioner, respondent and staff, through
the presiding member of the State Board, may:

1. Call and examine witnesses concerning any
matter relevant to the issues of the case.

2. Introduce exhibits relevant to the issues
of the case.

3. Direct any question to an opposing
witness that the State Board determines is relevant to the issues of the case.

4. Impeach any witness, regardless of which
party first called the witness to testify.

5. Offer rebuttal evidence.

6. Call any person who, because of his or
her relationship to any other party, may be an adverse witness and examine the
person as an adverse witness.

NAC 361.737Direct appeal: Rules of evidence; depositions; exchange of names
of witnesses and copies of evidence. (NRS 361.375)In any
hearing of a direct appeal:

1. The hearing will not be conducted
according to the technical rules of evidence and procedure as practiced in
civil actions. Except as otherwise provided in NAC
361.745 or by a specific statute, any relevant evidence may be admitted, if
it is of a type commonly relied upon by reasonable and prudent persons in the
conduct of their affairs, regardless of whether the evidence is subject to
objection in civil actions.

2. Hearsay evidence, as that term is used in
civil actions, may be admitted to supplement or explain other evidence, but it
is not sufficient by itself to support findings of fact unless it is admissible
over objection in civil actions.

3. The rules of privilege will be applied as
they are applied in civil actions.

4. Irrelevant, cumulative and unduly
repetitious evidence is not admissible, nor is incompetent evidence, as that
term is used in civil trials, with the exception of hearsay evidence as
provided in subsection 2.

5. The parties or their counsel may, by
written stipulation, agree that certain specified evidence may be admitted,
regardless of whether the evidence is otherwise subject to objection.

6. The State Board may:

(a) Cause the depositions of witnesses to be taken
in the manner prescribed by law and the rules of the court for depositions in
civil actions.

(b) Upon the motion of a party or the person from
whom the deposition is sought, and upon a showing of good cause, prohibit,
restrict or modify the scope of the deposition.

Ê Unless the
State Board otherwise directs, all depositions conducted pursuant to this
section must be completed not later than 10 days before the date established
for the hearing. A party may file a motion with the State Board asking that
depositions be completed earlier or later. The State Board will grant such a
motion on a showing of good cause.

7. A party that objects to the admission or
exclusion of any piece of evidence must, at the time the party makes his or her
objection, briefly state the grounds on which he or she objects.

8. If the State Board sustains an objection
to the admission of certain evidence, the party offering the evidence may make
an offer of proof for the record. An offer of proof must consist of a statement
of the substance of the evidence to which objection has been sustained. An
offer of proof must be included in the record.

9. The failure of a party to enter a timely
objection to the admission or exclusion of a piece of evidence constitutes a
waiver of the party’s right to object.

10. Not later than 10 days before the date
established for the hearing, a party shall provide all other parties with:

(a) The names of each witness that the party
expects to call to offer testimony at the hearing.

(b) A copy of each exhibit, paper or other
documentary evidence that the party expects to introduce at the hearing.

1. In a hearing of an appeal of a decision
of a county board, a party that wishes to introduce evidence that was not
submitted to the county board in the first instance must:

(a) Satisfy the State Board that the new evidence
could not, by due diligence, have been discovered or secured before the final
adjournment of the county board; and

(b) Submit the evidence in writing to the State
Board and all parties of record not less than 7 business days before the
hearing on the matter.

2. For the purposes of this section:

(a) A new summary or extract prepared from evidence
that was submitted to a county board in the first instance is not new evidence.

(b) The State Board interprets “days” as used in NRS 361.360 to mean calendar days.

(Added to NAC by St. Bd. of Equalization by R018-97,
eff. 12-19-97; A by R029-05, 6-28-2006)

NAC 361.741Appeal of decision of county board: Burden of proof; order and
length of presentations. (NRS 361.375)In a
hearing concerning an appeal from a decision of a county board:

1. The petitioner has the burden of proof.

2. The order and length of presentations
will ordinarily be:

(a) A brief orientation by the county assessor or
the county assessor’s staff;

(b) A presentation of not more than 15 minutes by
the petitioner;

(c) A presentation of not more than 15 minutes by
the respondent; and

(d) A rebuttal of not more than 5 minutes by the
petitioner.

3. If the State Board allows a party,
pursuant to NRS 361.360 and 361.400 and NAC
361.739, to present new evidence, the State Board will extend the length of
the party’s presentation by the time required to present the evidence and, in
the case of new testimony, for the State Board to question the witness.

(Added to NAC by St. Bd. of Equalization by R018-97,
eff. 12-19-97; A by R029-05, 6-28-2006)

1. Except as otherwise provided in this
section, in a direct appeal, the State Board will limit its consideration to
the issues and contentions set forth in the petition for a hearing before the
State Board.

2. Issues, contentions and evidence beyond
the scope of the petition may be considered by the State Board if:

(a) New issues, contentions and evidence are
discovered which could not by due diligence have been discovered and presented
in the petition; and

(b) The issues, contentions and evidence are set
forth in an addendum to the petition.

3. The addendum to the petition must be
submitted in writing to the State Board and each party not less than 15 days
before the hearing of the appeal. The addendum must include:

(a) A statement reciting the facts, reasons and
statutory basis relied upon to support each claim raised in the addendum;

(b) All evidence upon which the addendum to the
petition is based and which supports the claims therein; and

(c) A statement of the relief sought.

4. Each party is entitled to respond to any
such issue, contention or evidence:

(a) In a brief, memorandum or other written
document as set forth in NAC 361.703; and

NAC 361.747Submission of case for decision; decision of State Board;
correction of clerical mistake in record. (NRS 361.375)

1. After the hearing of a contested case,
and the receipt by the State Board of all posthearing briefs or the expiration
of the time prescribed by the State Board for submitting such briefs, if any,
the case shall stand submitted for decision.

2. In reaching its decision in a contested
case, the State Board:

(a) Will make an independent valuation of the
property that is the subject of the appeal. This valuation may be different
from any valuation proposed by a party to the appeal.

(b) May sustain, reverse or modify, in whole or in
part, any decision appealed to it.

(c) If the appeal is brought pursuant to subsection
1 of NRS 361.360, may determine
the question of whether real or personal property is exempt from taxation
pursuant to any provision of NRS
361.045 to 361.187,
inclusive.

3. The staff shall prepare the State Board’s
final decision on the issues presented in the hearing pursuant to the direction
and with the approval of the State Board. The draft of each decision must be
approved by the Chair of the State Board before being issued.

4. The State Board’s final decision in a
contested case will be written and will include separate findings of fact and
conclusions of law based upon substantial evidence or matters officially
noticed. After a case stands submitted for decision, the State Board may
request proposed findings of fact and conclusions of law from a party.

5. The Department shall serve a copy of the
State Board’s decision upon each party of record, any representative of a party
of record and each member of the State Board, in person or by certified mail,
within 60 days after the date of the decision.

6. Except as otherwise provided in this
subsection, a clerical mistake in a decision, order or any other part of the
record of the State Board may be corrected by the staff on its own initiative
or on the motion of a party. If the record of the State Board is before a court
pursuant to NRS 361.410 to 361.435, inclusive, a clerical
mistake may be corrected only as directed by the court.

1. A party who believes that a decision or
order of the State Board, or any portion thereof, is:

(a) Unlawful;

(b) Unreasonable; or

(c) Based on findings of fact or conclusions of law
that are erroneous,

Ê may file a
petition for reconsideration. The petition must be filed with the State Board
and served on all parties within 15 days after the date of service of the
decision or order.

2. A petition for reconsideration must:

(a) Identify with precision each portion of the
decision or order that the party alleges is unlawful, unreasonable or
erroneous.

(b) Cite with specificity those portions of the
record, the statutes or regulations that support the allegations in the
petition. The petition must not include additional evidence or request the
submission or taking of new evidence.

3. A party may submit an answer in
opposition to a petition for reconsideration. The answer must be filed with the
State Board and served on all other parties within 5 days after the date of
service of the petition for reconsideration. The answer must be limited to the
issues raised in the petition for reconsideration.

4. The State Board will grant or deny, in
whole or in part, a timely filed petition for reconsideration within 60 days
after the date of service of the final decision. If the State Board takes no
action within the 60 days, the petition shall be deemed to be denied.

5. Unless otherwise provided by the State
Board, the filing of a petition for reconsideration or the granting of such a
petition by the State Board does not excuse compliance with or suspend the
effectiveness of the challenged decision or order.

6. If the State Board grants a petition for
reconsideration, it will reexamine the decision or order and the record with
regard to the issues on which it granted reconsideration. After this
reexamination, the State Board will issue a modified final order or reaffirm
its original order.

7. A modified final decision or order
incorporates all portions of the original decision or order not modified. A
modified final decision or order, or the original decision or order if
reaffirmed, is the final decision of the State Board.

8. For the purposes of NRS 361.420, the date of the
issuance of the decision of the State Board denying relief is:

(a) If the State Board grants a petition for
reconsideration, the date the State Board issues its modified final decision or
order or reaffirms its original decision or order; or

(b) If the State Board denies a petition for
reconsideration, the date the petition is denied or deemed to be denied.

(Added to NAC by St. Bd. of Equalization by R029-05,
eff. 6-28-2006)

NAC 361.748Action for redress from finding of State Board. (NRS 361.375)A person
who commences an action pursuant to NRS
361.410 to 361.435,
inclusive, for redress from a finding of the State Board shall serve a copy of
the summons, complaint or petition on the Department.

NAC 361.751Jurisdiction. (NRS 361.375)Since
the State Board’s jurisdiction is limited to the equalization of the assessed
valuation of property, the Secretary may respond to any request for an advisory
opinion as being directed to the Commission.

1. For the purpose of calculating any amount
required to be deducted pursuant to subsection 4 of NRS 361.4722, subsection 3 of NRS 361.4723 or subsection 3 of NRS 361.4724 for a fiscal year
from the amount any taxing entity would otherwise be entitled to receive from the
ad valorem taxation of a parcel or other taxable unit of property, the
entity-adjusted parcel tax rate of each taxing entity must be used to
determine:

(a) The rate of ad valorem taxes levied in the
county on that property by or on behalf of each taxing entity for that fiscal
year; and

(b) The combined rate of all ad valorem taxes
levied in the county on that property by or on behalf of all taxing entities
for that fiscal year.

2. For the purposes of this section, the
“entity-adjusted parcel tax rate” of a taxing entity means the rate of ad
valorem taxes imposed by or on behalf of that taxing entity upon a parcel or
other taxable unit of property for a fiscal year, as calculated by:

(a) Multiplying the actual rate of ad valorem taxes
levied by or on behalf of that taxing entity for that fiscal year by the
assessed value of that property for that fiscal year;

(b) Subtracting from the amount determined pursuant
to paragraph (a) any amount deducted for that fiscal year pursuant to paragraph
(c) of subsection 1 of NAC 361.781 from the amount
that taxing entity would otherwise be entitled to receive from the ad valorem
taxation of that property; and

(c) Dividing the amount determined pursuant to
paragraph (b) by the assessed value of that property for that fiscal year to
determine that entity-adjusted parcel tax rate.

(Added to NAC by Com. on Local Gov’t Finance by R044-06,
eff. 5-4-2006; A by R023-08, 4-17-2008)—(Substituted in revision for NAC
361.611)

Property Located Outside of Redevelopment Area or Tax
Increment Area

NAC 361.765Definitions. (NRS 361.4733)As used
in NAC 361.765 to 361.781,
inclusive, unless the context otherwise requires, the words and terms defined
in NAC 361.767 to 361.779,
inclusive, have the meanings ascribed to them in those sections.

(Added to NAC by Com. on Local Gov’t Finance by R023-08,
eff. 4-17-2008)

NAC 361.767“Combined overlapping adjusted tax rate” defined. (NRS 361.4733)“Combined
overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel
tax rates of all the taxing entities that levy an ad valorem tax on a parcel or
other taxable unit of property.

(Added to NAC by Com. on Local Gov’t Finance by R023-08,
eff. 4-17-2008)

1. Except as otherwise provided in
subsection 2, the remainder obtained by subtracting the entity-adjusted parcel
tax rate of a taxing entity applicable to a parcel or other taxable unit of
property for the immediately preceding fiscal year from the rate of ad valorem
taxes imposed by or on behalf of that taxing entity on that parcel or other
taxable unit of property for the current fiscal year; or

2. If the remainder determined pursuant to
subsection 1 is a negative number, zero.

(Added to NAC by Com. on Local Gov’t Finance by R023-08,
eff. 4-17-2008)

NAC 361.775“Redevelopment area” defined. (NRS 361.4733)“Redevelopment
area” means a redevelopment area, as defined in NRS 279.410, regarding which any
taxes levied on property in that area are distributed as provided in NRS 279.676.

(Added to NAC by Com. on Local Gov’t Finance by R023-08,
eff. 4-17-2008)

NAC 361.777“Tax increment area” defined. (NRS 361.4733)“Tax
increment area” means a tax increment area, as defined in NRS 278C.130, regarding which any
taxes levied on property in that area are distributed as provided in NRS 278C.250.

(Added to NAC by Com. on Local Gov’t Finance by R023-08,
eff. 4-17-2008)

1. Except as otherwise provided in
subsection 2 or required to carry out the provisions of NRS 361.4732:

(a) On or before August 1 of each fiscal year, the
tax receiver of each county shall determine for each parcel or other taxable
unit of property located in that county, other than any property to which
paragraph (b) applies, for which the combined overlapping tax rate applicable
to the property for the current fiscal year exceeds the combined overlapping
adjusted tax rate applicable to the property for the immediately preceding
fiscal year, the amount which equals the lesser of:

(1) The amount of any partial abatement of
taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the current fiscal
year; or

(2) The product of the assessed value of the
property for the current fiscal year and the difference between:

(I) The combined overlapping tax rate
applicable to the property for the current fiscal year; and

(b) On or before August 1 of each fiscal year, the
Department shall determine for each parcel or other taxable unit of property
which is valued pursuant to NRS
361.320 or 361.323 and for
which the combined overlapping tax rate applicable to the property for the
current fiscal year exceeds the combined overlapping adjusted tax rate
applicable to the property for the immediately preceding fiscal year, the
amount which equals the lesser of:

(1) The amount of any partial abatement of
taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the current fiscal
year; or

(2) The product of the assessed value of the
property for the current fiscal year and the difference between:

(I) The combined overlapping tax rate
applicable to the property for the current fiscal year; and

(c) That portion of the amount of any reduction in
the ad valorem taxes levied on any parcel or other taxable unit of property as
a result of the application of NRS
361.4722, 361.4723 and 361.4724 which is determined
pursuant to paragraph (a) or (b) must be deducted from the amount of ad valorem
taxes that would otherwise be distributed to the taxing entities whose entity
parcel tax rate increase is greater than zero in proportion to their respective
entity parcel tax rate increases.

(d) Each calculation required pursuant to this
section must be:

(1) Calculated separately for each parcel or
other taxable unit of property; and

(2) Recalculated for each fiscal year.

2. The provisions of this section must not
be applied in any manner that:

(b) Would not allocate the revenue from any
increase in ad valorem taxes described in paragraph (a) to the taxing entity
who levies that increase or on behalf of whom that increase is levied.

3. As used in this section, “property” means
property which is located outside of any redevelopment area or tax increment
area.

(Added to NAC by Com. on Local Gov’t Finance by R023-08,
eff. 4-17-2008)

Property Located in Redevelopment Area or Tax Increment
Area

NAC 361.785Definitions. (NRS 361.4733)As used
in NAC 361.785 to 361.821,
inclusive, unless the context otherwise requires, the words and terms defined
in NAC 361.787 to 361.811,
inclusive, have the meanings ascribed to them in those sections.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.787“Combined overlapping adjusted tax rate” defined. (NRS 361.4733)“Combined
overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel
tax rates of all the taxing entities that levy an ad valorem tax on a parcel or
other taxable unit of property.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.789“Debt tax rate” defined. (NRS 361.4733)“Debt
tax rate” means the rate of ad valorem taxes levied by or on behalf of a taxing
entity in a fiscal year for the payment of the bonded indebtedness of that
taxing entity, as included in the combined tax rate certified by the Commission
for that fiscal year in accordance with NRS 361.4547.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

1. Except as otherwise provided in
subsection 2, the remainder obtained by subtracting the entity-adjusted parcel
tax rate of a taxing entity applicable to a parcel or other taxable unit of
property for the immediately preceding fiscal year from the entity-adjusted
parcel tax rate of that taxing entity applicable to that property for the
current fiscal year; or

2. If the remainder determined pursuant to
subsection 1 is a negative number, zero.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

1. Except as otherwise provided in
subsection 2, the remainder obtained by subtracting the entity-adjusted parcel
tax rate of a taxing entity applicable to a parcel or other taxable unit of
property for the immediately preceding fiscal year from the rate of ad valorem
taxes imposed by or on behalf of that taxing entity on that property for the
current fiscal year; or

2. If the remainder determined pursuant to
subsection 1 is a negative number, zero.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

1. Except as otherwise provided in
subsection 2, the percentage obtained by dividing the entity-adjusted parcel
tax rate of a taxing entity applicable to a parcel or other taxable unit of
property by the entity parcel tax rate increase of that taxing entity
applicable to that property; or

2. If the entity parcel tax rate increase of
a taxing entity applicable to a parcel or other taxable unit of property is
zero, 100 percent.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.799“Parcel effective assessed value” defined. (NRS 361.4733)“Parcel
effective assessed value” means the amount calculated by dividing the dollar
amount of ad valorem taxes levied on a parcel or other taxable unit of
property, after taking into account any applicable partial abatement of taxes
pursuant to NRS 361.4722, 361.4723 or 361.4724, by the combined
overlapping adjusted tax rate applicable to that property.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

1. Except as otherwise provided in
subsection 2, the remainder obtained by subtracting the parcel share of base
value of a parcel or other taxable unit of property from the parcel effective
assessed value of that property; or

2. If the remainder determined pursuant to
subsection 1 is a negative number, zero.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.803“Parcel share of base value” defined. (NRS 361.4733)“Parcel
share of base value” means, for a parcel or other taxable unit of property
located in a:

1. Redevelopment area, the product obtained
by multiplying the base value of the taxable property in the redevelopment
area, as determined in accordance with the provisions of paragraph (a) of
subsection 1 of NRS 279.676, by
the quotient obtained by dividing the parcel effective assessed value of that
parcel or other taxable unit of property by the sum of the parcel effective
assessed values of all the parcels and other taxable units of property in that
redevelopment area.

2. Tax increment area, the product obtained
by multiplying the base value of the taxable property in the tax increment
area, as determined in accordance with the provisions of paragraph (a) of
subsection 1 of NRS 278C.250,
by the quotient obtained by dividing the parcel effective assessed value of
that parcel or other taxable unit of property by the sum of the parcel
effective assessed values of all the parcels and other taxable units of
property in that tax increment area.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.805“Property” defined. (NRS 361.4733)“Property”
means property located in a redevelopment area or tax increment area.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.807“Redevelopment area” defined. (NRS 361.4733)“Redevelopment
area” means a redevelopment area, as defined in NRS 279.410, regarding which any
taxes levied on property in that area are distributed as provided in NRS 279.676.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.809“Tax increment area” defined. (NRS 361.4733)“Tax
increment area” means a tax increment area, as defined in NRS 278C.130, regarding which any
taxes levied on property in that area are distributed as provided in NRS 278C.250.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

1. Except as otherwise provided in NAC 361.785 to 361.821,
inclusive, each calculation required pursuant to those provisions must be:

(a) Calculated separately for each parcel or other
taxable unit of property; and

(b) Recalculated for each fiscal year.

2. For the purposes of NAC 361.785 to 361.821,
inclusive, the entity-adjusted parcel tax rate applicable to a parcel or other
taxable unit of property must be calculated in the same manner as if the
property was not located in a redevelopment area or tax increment area.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.815Distribution of ad valorem taxes collected on property for which
parcel effective incremental value is zero. (NRS 361.4733)The ad
valorem taxes collected on a parcel or other taxable unit of property for which
the parcel effective incremental value is zero must be distributed in the same
manner as if the property was not located in a redevelopment area or tax
increment area.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.817Distribution of ad valorem taxes collected on property located in
redevelopment area and for which parcel effective incremental value is greater
than zero. (NRS 361.4733)

1. Except as otherwise provided in
subsection 2 of NRS 279.676 and NAC 361.821, the ad valorem taxes collected on a
parcel or other taxable unit of property which is located in a redevelopment
area and for which the parcel effective incremental value is greater than zero
must be distributed as follows:

(a) The amount of taxes determined by multiplying
the parcel share of base value by the combined overlapping adjusted tax rate
applicable to that property must be distributed to the entities entitled to
receive those taxes pursuant to paragraph (a) of subsection 1 of NRS 279.676 in proportion to their
respective entity adjusted parcel tax rates;

(b) The amount of taxes determined by multiplying
the combined overlapping post-1996 adjusted parcel tax rate by the parcel
effective incremental value applicable to that property must be distributed to
the entities described in paragraphs (c) and (d) of subsection 1 of NRS 279.676 in proportion to their
respective post-1996 adjusted parcel tax rates; and

(c) After deducting the amount of taxes required to
be distributed pursuant to paragraphs (a) and (b), any remaining amount must be
distributed to the redevelopment agency as provided in paragraph (b) of
subsection 1 of NRS 279.676.

2. For the purposes of this section:

(a) “Combined overlapping post-1996 adjusted parcel
tax rate” means the sum of all the post-1996 adjusted parcel tax rates of all
the taxing entities that levy an ad valorem tax on a parcel or other taxable
unit of property.

(b) “Post-1996 adjusted parcel tax rate” means:

(1) For the fiscal year beginning on July 1,
2004, the post-1996 debt tax rate of a taxing entity applicable to a parcel or
other taxable unit of property for that fiscal year; and

(2) For each subsequent fiscal year, the sum
obtained by adding:

(I) The post-1996 adjusted parcel tax
rate of a taxing entity applicable to a parcel or other taxable unit of
property for the immediately preceding fiscal year; and

(II) The product obtained by multiplying
the post-1996 parcel tax rate increase of that taxing entity applicable to that
property for the current fiscal year by the entity percentage allowed parcel
tax rate increase of that taxing entity applicable to that property.

(c) “Post-1996 debt tax rate” means the portion of
the debt tax rate of a taxing entity which is levied to pay any bonded
indebtedness approved by the voters of the taxing entity on or after November
5, 1996, as described in paragraph (c) of subsection 1 of NRS 279.676. The post-1996 debt tax
rate of a taxing entity for a fiscal year must be determined by multiplying the
debt tax rate of that taxing entity for that fiscal year by a fraction, the
numerator of which is the total amount of principal and interest coming due in
that fiscal year on all the bonded indebtedness of that taxing entity which was
approved by the voters of that taxing entity on or after November 5, 1996, and
is to be paid with ad valorem taxes, and the denominator of which is the total
amount of principal and interest coming due in that fiscal year on all the
bonded indebtedness of that taxing entity for which the debt tax rate is being
levied. For the purposes of this paragraph, the amount of principal and
interest on the bonded indebtedness of a taxing entity coming due in a fiscal
year for which the debt tax rate is being levied, and the amount of such
indebtedness coming due in a fiscal year to be paid with ad valorem taxes
approved by the voters of that taxing entity on or after November 5, 1996, must
be determined by reference to the approved final budget of that taxing entity
which was used by the Commission to certify the combined tax rate in accordance
with NRS 361.4547, and must not
be adjusted thereafter despite the occurrence of any event that changes the
amount of bonded indebtedness of the taxing entity coming due in that fiscal
year to be paid with ad valorem taxes.

(d) “Post-1996 parcel tax rate increase” means the
remainder obtained by subtracting the post-1996 adjusted parcel tax rate of a
taxing entity applicable to a parcel or other taxable unit of property for the
immediately preceding fiscal year from the post-1996 tax rate of that taxing
entity applicable to that property for the current fiscal year.

(e) “Post-1996 tax rate” means the portion of the
rate of ad valorem taxes of a taxing entity which is equal to the sum obtained
by adding the post-1996 debt tax rate of that taxing entity to the rate of ad
valorem taxes of that taxing entity attributable to a new or increased tax rate
which is approved by the voters of that taxing entity on or after November 5,
1996, as described in paragraph (d) of subsection 1 of NRS 279.676.

(f) “Property” means property located in a
redevelopment area.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.819Distribution of ad valorem taxes collected on property located in
tax increment area and for which parcel effective incremental value is greater
than zero. (NRS 361.4733)

1. Except as otherwise provided in
subsection 2, NAC 361.821 and subsections 2 and 3
of NRS 278C.250, the ad
valorem taxes collected on a parcel or other taxable unit of property which is
located in a tax increment area and for which the parcel effective incremental
value is greater than zero must be distributed as follows:

(a) The amount of taxes determined by multiplying
the parcel share of base value by the combined overlapping adjusted tax rate
applicable to that property must be distributed to the entities entitled to
receive those taxes pursuant to paragraph (a) of subsection 1 of NRS 278C.250 in proportion to
their respective entity-adjusted parcel tax rates;

(b) The amount of taxes determined by multiplying
the combined overlapping debt and override adjusted parcel tax rate by the
parcel effective incremental value applicable to that property must be distributed
to the entities described in paragraphs (a), (b) and (c) of subsection 4 of NRS 278C.250 in proportion to
their respective debt and override adjusted parcel tax rates;

(c) The amount of taxes determined by multiplying
the tax rate specified in subsection 1 of NRS 387.195 by the parcel effective
incremental value applicable to that property must be distributed as provided
in paragraph (d) of subsection 4 of NRS
278C.250;

(d) After deducting the amount of taxes required to
be distributed pursuant to paragraphs (a), (b) and (c), any remaining amount which
does not exceed the combined total amount required for annual debt service on
any bonds that have been issued by the entity that created that tax increment
area and regarding which any revenues of that tax increment area have been
pledged, must be distributed to that entity as provided in paragraphs (b) and
(c) of subsection 1 of NRS
278C.250; and

(e) After deducting the amount of taxes required to
be distributed pursuant to paragraphs (a) to (d), inclusive, any remaining
amount must be distributed:

(1) Except as otherwise provided in
subparagraph (2), to the taxing entities that impose a nonschool, nondebt and
nonoverride adjusted parcel tax rate in proportion to their respective nonschool,
nondebt and nonoverride adjusted parcel tax rates as provided in paragraph (d)
of subsection 1 of NRS 278C.250;
or

(2) If the taxes are collected on property
located in a tax increment area created pursuant to NRS 278C.155, to the entity that
created the tax increment area.

2. Paragraph (c) of subsection 1 does not
apply to any taxes levied on property located in a tax increment area created
pursuant to NRS 278C.155.

3. For the purposes of this section:

(a) “Combined overlapping debt and override
adjusted parcel tax rate” means the sum of all the debt and override adjusted
parcel tax rates of all the taxing entities that levy an ad valorem tax on a
parcel or other taxable unit of property.

(b) “Debt and override adjusted parcel tax rate”
means:

(1) For the fiscal year beginning on July 1, 2004,
the debt and override tax rate of a taxing entity applicable to a parcel or
other taxable unit of property for that fiscal year; and

(2) For each subsequent fiscal year, the sum
obtained by adding:

(I) The debt and override adjusted parcel
tax rate of a taxing entity applicable to a parcel or other taxable unit of
property for the immediately preceding fiscal year; and

(II) The product obtained by multiplying
the debt and override parcel tax rate increase of that taxing entity applicable
to that property for the current fiscal year by the entity percentage allowed
parcel tax rate increase of that taxing entity applicable to that property.

(c) “Debt and override parcel tax rate increase”
means the remainder obtained by subtracting the debt and override adjusted
parcel tax rate of a taxing entity applicable to a parcel or other taxable unit
of property for the immediately preceding fiscal year from the debt and
override tax rate of that taxing entity applicable to that property for the
current fiscal year.

(d) “Debt and override tax rate” means the portion
of the rate of ad valorem taxes of a taxing entity which is equal to the sum
obtained by adding:

(1) The debt tax rate of that taxing entity
which is levied to pay any bonded indebtedness approved by a majority of the
registered voters within the area of that taxing entity voting upon the
question;

(2) The portion of the rate of ad valorem
taxes of that taxing entity attributable to any increase in that rate since the
creation of the tax increment area which was approved by a majority of the
registered voters within the area of that taxing entity voting upon the
question; and

(3) The portion of the rate of ad valorem
taxes of that taxing entity which is levied pursuant to NRS 387.3285 or 387.3287, and which was approved
by a majority of the registered voters within the area of that taxing entity
voting upon the question,

Ê as
respectively described in paragraphs (a), (b) and (c) of subsection 4 of NRS 278C.250.

(e) “Nonschool, nondebt and nonoverride adjusted
parcel tax rate” means the remainder obtained by subtracting from the
entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or
other taxable unit of property:

(1) If included in that entity-adjusted parcel
tax rate, the tax rate mandated by subsection 1 of NRS 387.195; and

(2) The debt and override adjusted parcel tax
rate of that taxing entity applicable to that property.

(f) “Property” means property located in a tax
increment area.

(Added to NAC by Com. on Local Gov’t Finance by R022-08,
4-17-2008, eff. 7-1-2008)

NAC 361.821Application of certain provisions: Limitations. (NRS 361.4733)The
provisions of NAC 361.817 and 361.819 must not be applied in any manner that:

1. The owner of a single-family residence
who wishes to file a claim to postpone the payment of the property taxes
accrued against his or her residence must file the claim with the county
treasurer of the county in which the residence is located not later than 10
days after the date on which the last installment of those taxes is due for the
current fiscal year. A claim:

(a) Must be filed for each fiscal year in which
property taxes to be postponed are accrued.

(b) May not be filed for more than 3 consecutive
fiscal years.

2. A claim may not include a request to
postpone the payment of any fees, special assessments, delinquent taxes,
interest or other charges included on the tax bill for the residence.

3. A claim must be filed on a form that has
been approved by the Commission.

4. A claim must contain:

(a) The name, mailing address and daytime telephone
number of the claimant.

(b) The names and mailing addresses of all other
owners of the residence.

(c) The names and ages of all other members of the
claimant’s household and the relationship of each member to the claimant.

(d) The street address of the residence and the
parcel number or identification number assigned to the residence by the county
assessor of the county in which the residence is located.

(e) The length of time the claimant has occupied
the residence.

(f) The current assessed value of the residence.

(g) A list of any other real property in this State
owned by the claimant and a list of any other real property in this State owned
by any other owner of the residence. Each list must include, without
limitation:

(1) The county in which the real property is
located;

(2) The street address of the real property;

(3) The parcel number or identification number
assigned to the real property by the county assessor of the county in which the
property is located; and

(4) The current assessed value of the real
property.

(h) A statement indicating whether or not the
claimant or any other owner of the residence is the subject of any proceeding
for bankruptcy and, if so, the name and social security number used to identify
that owner for the proceeding.

(i) A statement indicating that the residence is
occupied by the claimant.

(j) A statement indicating whether or not the
claimant or any other owner of the residence owes delinquent property taxes on
the residence for a year other than the year in which the claim is filed.

(k) A description of the circumstances that were
beyond the control of the claimant and caused the claimant to suffer severe
economic hardship.

(l) The total annual income of the members of the
claimant’s household.

(m) The length of time the claimant expects the
severe economic hardship to continue.

(n) A statement indicating whether or not the
property taxes are paid by a mortgage company.

5. Except as otherwise provided in NAC 361.853 to 361.871,
inclusive, a claim must be accompanied by:

(a) A copy of the tax bill for the residence.

(b) A copy of the federal individual income tax
return for the preceding taxable year for each owner of the residence and each
member of the household. If an owner or member of the household did not file a
federal individual income tax return, the claim must be accompanied by a copy
of the most recent “Form W-2” received by the owner or member of the household
from each of his or her employers and a copy of each “Form 1099” and each
“Schedule K-1” received by the owner or member of the household in the taxable
year in which the “Form W-2” was received. The county treasurer with whom the
claim is filed may request a copy of any other supporting forms or schedules
that are filed with the tax returns and are required to determine whether the
claimant is eligible to postpone the payment of the property taxes.

(c) Evidence which indicates that the claimant has
occupied the residence for the 6 months immediately preceding the filing of the
claim. A driver’s license is not sufficient evidence of occupancy. Such
evidence:

(1) May include copies of utility bills for
each month of the immediately preceding 6-month period.

(2) Must include the name of the claimant or
another owner of the residence, the address of the residence and a date that
can be used to determine whether the residence has been occupied by the
claimant for the 6 months immediately preceding the filing of the claim.

(d) Documentation that describes the circumstances
causing the severe economic hardship suffered by the claimant. Such
documentation may include, without limitation, a statement from an attending
physician describing the nature of an illness or injury and the estimated time
needed for recovery or a letter indicating that the claimant’s employment has
been terminated.

6. The information required to be submitted
with a claim pursuant to paragraphs (b) and (d) of subsection 5 shall be deemed
to be confidential information for the purposes of NRS 361.7384.

1. Upon the receipt of a claim for the
postponement of the payment of property tax, a county treasurer shall verify:

(a) The last known owner of record of the
single-family residence for which the claim is made, by inspecting public
records containing such information.

(b) The parcel number or identification number
assigned to the residence by the county assessor of the county in which the
residence is located, the land use and total assessed value of the residence,
and whether the residence is on the secured or unsecured tax roll, by
inspecting the records of the county assessor.

(c) Whether the claimant or any other owner of the
residence is the subject of any proceeding in bankruptcy, by inspecting the
records of the United States Bankruptcy Courts located in this State.

(d) Whether the claimant or any other owner of the
residence owes delinquent property taxes on the residence for a year other than
the year in which the claim is filed.

(e) The total assessed value of any other real
property in this State owned by the claimant and the total assessed value of
any other real property in this State owned by any other owner of the
residence.

2. Based upon the information verified
pursuant to subsection 1, the county treasurer shall determine whether:

(a) The assessed value of the residence exceeds
$175,000.

(b) The claimant or any other owner of the residence
owns any other real property in this State that has an assessed value of more
than $30,000. For this purpose, the claimant or other owner may own multiple
parcels of real property in this State so long as the total assessed value of
all of his or her parcels, excluding the single-family residence that is the
subject of the claim, does not exceed $30,000.

(c) The residence has been occupied by the claimant
for the 6 months immediately preceding the filing of the claim.

(d) The claimant or any other owner of the
residence is the subject of any proceeding in bankruptcy.

(e) Delinquent property taxes are owed on the
residence for a year other than the year in which the claim is filed, including
taxes owed because of any changes made to the boundary of the parcel or to the
parcel map.

(f) The total annual income of the members of the
claimant’s household is at or below the federally designated level signifying
poverty. This determination must be based on income received for the 365 days
immediately preceding the filing of the claim.

(g) There is sufficient evidence to indicate that
the claimant suffered a severe economic hardship that was caused by
circumstances beyond his or her control.

3. The county treasurer shall deny the claim
if he or she determines that the claimant does not comply with the requirements
for eligibility set forth in NRS
361.7376.

4. If the county treasurer does not receive
sufficient information to determine whether the claimant is eligible to
postpone the payment of the property taxes accrued against the residence, the
county treasurer shall:

(a) Deny the claim until such time as the claimant
provides sufficient information that indicates he or she is eligible to
postpone the payment of those taxes; and

(b) Include in the notice of his or her decision a
description of the additional information that is needed to approve the claim.

5. If the county treasurer denies a claim
pursuant to subsection 4, the claimant may request the county treasurer to
reconsider his or her determination by submitting the additional information
that is needed to approve the claim not later than May 30 of the current fiscal
year.

1. The Department will annually provide to
the county treasurers of this State the amount of income for the current fiscal
year that is at or below the federally designated level signifying poverty,
based on the guidelines established in the Federal Register by the United
States Department of Health and Human Services pursuant to 42 U.S.C. § 9902(2).

2. Each county treasurer shall use the
amount of income provided by the Department pursuant to subsection 1 to
determine whether a claimant is eligible to postpone the payment of the
property taxes accrued against his or her single-family residence.

(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

NAC 361.857Approval of claim for taxes accrued against mobile or
manufactured home. (NRS 361.7374)A county
treasurer may approve a claim to postpone the property taxes accrued against a
mobile home or manufactured home if:

1. That home is a single-family residence as
defined in NRS 361.7372; and

2. The claimant is otherwise eligible to
postpone the payment of those taxes.

(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

NAC 361.859Approval of claim for taxes accrued against single-family
residence owned by trust. (NRS 361.7374)A county
treasurer may approve a claim to postpone the payment of the property taxes
accrued against a single-family residence that is owned by a trust if:

1. The claimant or any other owner of the
residence is one of the trustors;

2. The claim is accompanied by a certificate
of trust which indicates that the claimant or another owner of the residence is
a trustor; and

3. The claimant is otherwise eligible to
postpone the payment of those taxes.

1. If a county treasurer approves a claim to
postpone the payment of property taxes accrued against a single-family
residence, the county treasurer shall determine the amount of property tax that
will be postponed and the period for which the property tax will be postponed
based on the information contained in the claim.

2. If the claimant is in arrears in the
payment of any installment of the property taxes due for the current fiscal
year, the county treasurer may postpone the payment of the taxes for the entire
fiscal year or for any portion of that year.

3. The period for which property tax accrued
in a fiscal year will be postponed may not exceed 1 year.

1. The form for a certificate of eligibility
prescribed by the Department will be:

(a) Submitted to the Commission for its approval.

(b) Designed to comply with the recording
requirements of the county recorders in this State.

2. Except as otherwise provided in NRS 361.7386, information that is
contained in or that accompanies a claim to postpone the payment of property
taxes accrued against a single-family residence may not be included in a
certificate of eligibility.

(c) Change the date upon which the property taxes
become delinquent or the period of redemption set forth in NRS 361.570.

2. If a certificate of eligibility is filed,
the county treasurer of the county in which the single-family residence is
located may postpone the publication of the notice of delinquency required by NRS 361.565 during the period for
which the payment of the property tax will be postponed. If the publication of
the notice of delinquency is postponed, the county treasurer shall not charge
the claimant with the cost of publication until such notice is published.

3. If the property taxes for a single-family
residence for which a certificate of eligibility is recorded are paid by a
mortgage company, the claimant is responsible for making arrangements with the
mortgage company for the postponement of the payment of the taxes and for any
adjustments that may be needed to an impound account for the payment of the
taxes.

(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

NAC 361.867Statement of amount postponed: Contents. (NRS 361.7374,
361.7392)A
statement of the total amount of property tax postponed that is provided
pursuant to NRS 361.7392 must
include:

1. The total amount of taxes owed as of the
date of the statement. This amount must include penalties incurred for the
current fiscal year and before the period of postponement becomes effective.

2. The total amount of interest accrued as
of the date of the statement.

(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

NAC 361.869Application of payments made before amounts become due. (NRS 361.7374,
361.7394)If a
claimant makes payments on the amount of property tax postponed before they
become due and payable, the county treasurer of the county in which the
single-family residence is located shall apply those payments to the taxes that
have been postponed for the longest time.

(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

NAC 361.871Fraudulent claims. (NRS 361.7374)If a
county treasurer determines that any person has willfully made a materially
false statement or used any other fraudulent device to secure for himself or
herself or any other person the postponed payment of property tax pursuant to
the provisions of NRS 361.736 to
361.7398, inclusive, the county
treasurer shall refer the claim to the district attorney for prosecution.

(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

ALLODIAL TITLE

General Provisions

NAC 361.900Definitions. (NRS 361.920)As used
in NAC 361.900 to 361.958,
inclusive, unless the context otherwise requires, the words and terms defined
in NAC 361.902 to 361.914,
inclusive, have the meanings ascribed to them in those sections.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.902“Certificate” defined. (NRS 361.920)“Certificate”
means a certificate of allodial title issued by the State Treasurer, which is
evidence that the titleholder has qualified for allodial title.

NAC 361.910“Property tax” defined. (NRS 361.920)“Property
tax” means the combined ad valorem taxes levied by all governmental entities on
a single-family dwelling, its appurtenances and the land on which it is
located. The term does not include the tax levied upon the net proceeds of
minerals, which is determined pursuant to NRS 362.140.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.912“Single-family dwelling” defined. (NRS 361.920)“Single-family
dwelling” means a single-family residence which is used as the primary living
quarters of a titleholder and which is not used for a commercial purpose.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.914“Titleholder” defined. (NRS 361.920)“Titleholder”
means a natural person who holds title to, owns and occupies a single-family
dwelling, its appurtenances and the land on which it is located free and clear
of all encumbrances, except any unpaid assessment for a public improvement. The
term does not include a corporation or other business entity, or a trust.

1. The program for allodial title allows
qualified titleholders to pay their property taxes for a period equal to the
life expectancy of the youngest titleholder of the property on which a
single-family dwelling is located. A titleholder:

(a) Must occupy the single-family dwelling as his
or her primary residence; and

(b) Is ineligible to hold allodial title on more
than one single-family dwelling at the same time.

2. The program will provide for the payment
of property taxes for holders of certificates of allodial title. The State
Treasurer, on behalf of the titleholders of a specific parcel of property, will
make payment of future property taxes for that property once the titleholders
have been issued a certificate and so long as the titleholders are qualified
for allodial title.

3. The program will not provide for the
payment of any special assessment, service charge or fee that is included on a
property tax bill.

4. The program applies and is restricted to
the surface rights of residential property, and does not include the mineral
rights of property. The program is intended to protect families from losing
family homes, not mining businesses, because of tax liens.

5. The State Treasurer will avoid, to the
extent possible, the unequal collection of property taxes by properly
determining the cost of a certificate.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

Certificate

NAC 361.926Denial of application for failure to provide requested
information. (NRS 361.900, 361.920)The State Treasurer may
deny an application if a titleholder fails to provide to the State Treasurer
any information requested by the State Treasurer relating to the application or
an installment agreement within a reasonable period prescribed by the State
Treasurer. The titleholder is not prohibited from submitting another
application in the future.

1. If the State Treasurer determines that a
titleholder has fraudulently misrepresented or omitted any information relating
to an application or installment agreement, the State Treasurer may deny the
application, cancel the installment agreement or revoke the certificate.

2. If the State Treasurer cancels the
installment agreement, the State Treasurer will so notify the titleholder and:

(a) Prepare a refund in the manner and subject to
the provisions set forth in NRS
361.900 for a refund upon the rescission of an installment agreement; and

(b) Remit the refund to the titleholder within 90
days.

3. If the State Treasurer revokes the
certificate, the State Treasurer will so notify the titleholder and:

(a) Prepare a refund in the manner and subject to
the provisions set forth in NRS
361.915 for a refund upon the relinquishment of allodial title; and

1. The State Treasurer will determine the
cost of a certificate in accordance with the provisions of NRS 361.900.

2. An actuarial calculation will be used to
project the life expectancy of the titleholders of the property, the income
that will be earned on the money in the Allodial Title Trust Account, and
changes in the assessed valuation of the property, including, without
limitation, the results of inflation and changes in taxable value resulting
from the construction, remodeling or rebuilding of improvements.

3. If the titleholder has made any property
tax payments that cover a period after the effective date of the certificate,
the titleholder will be provided credit for those property tax payments against
the cost of the certificate.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.932Cost: Payment options. (NRS 361.900, 361.920)The cost of the
certificate may be paid by the titleholder:

1. The titleholder shall remit payment
within 90 days after the State Treasurer provides notice of the amount of the
lump sum. If the lump sum is not received by the State Treasurer within that
period, the State Treasurer will recalculate the cost of the certificate.

2. The titleholder will have the option of
signing an agreement that the lump-sum cost may be recalculated if improvements
are made which increase the taxable value of the property at least 20 percent
over the taxable value of the property at the time the lump-sum cost was
determined. If the titleholder signs such an agreement, the State Treasurer
will reduce the lump-sum cost.

1. The titleholder must enter into an
installment agreement with the State of Nevada.

2. The installment agreement must contain a
provision that the State Treasurer will adjust the final installment payment to
reflect any increase or decrease in the assessed valuation of the property
since the date of the application in accordance with subsection 8 of NRS 361.900.

3. The State Treasurer may:

(a) Calculate varying annual installments so that
the final installment payment will not be extraordinarily high.

(b) Estimate a projected rate of change in the
assessed valuation of the property so that each annual installment will include
a portion of the change and the final installment will not include the entire
amount of the change.

4. During the period of the installment
agreement, the titleholder remains liable for payment of his or her property
taxes until the final payment pursuant to the installment agreement has been
paid and the titleholder has been issued a certificate.

5. The titleholder may prepay the annual
installments without penalty.

1. If
a titleholder chooses to pay in annual installments, the titleholder shall
remit payments pursuant to the installment agreement on the dates and in the
amounts set forth in the schedule for participation and payment provided to the
titleholder by the State Treasurer.

2. If a titleholder fails to remit a payment
required by the installment agreement within 30 days after the due date, the
titleholder shall be deemed to be in default of the installment agreement.

3. If a titleholder is deemed to be in
default, the State Treasurer will so notify the titleholder and:

(a) Prepare a refund in the manner and subject to
the provisions set forth in NRS
361.900 for a refund upon the rescission of an installment agreement; and

(b) Remit the refund to the titleholder within 90
days.

4. A titleholder who is deemed to be in
default may reapply for allodial title in the future in accordance with NRS 361.900 and NAC 361.900 to 361.958,
inclusive.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.940Notification of State Treasurer by holder of certificate if
certain changes relating to property occur. (NRS 361.915, 361.920)

1. A titleholder of property for which a
certificate has been issued shall notify the State Treasurer within 60 days
after:

(a) The titleholder sells or transfers the
property;

(b) The titleholder rents or leases the property;

(c) The titleholder converts the residence,
appurtenances or land to use by or as a commercial business;

(d) The titleholder moves or otherwise fails to
live in the residence;

(e) The titleholder encumbers or applies for a
mortgage or loan, using the property as collateral;

(f) A titleholder is added to or deleted from the
deed for the property; or

(g) A titleholder of the property dies.

2. Upon receipt of notification pursuant to
subsection 1, the State Treasurer will conduct a review to determine if the
titleholder qualifies to continue the allodial title on the property and, if
so, whether a recalculation of the cost of the certificate is necessary.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.942Recalculation of cost upon addition or deletion of allodial
titleholder involving transfer of interest to person other than joint tenant. (NRS 361.915,
361.920)Upon the
addition or deletion of an allodial titleholder that involves a transfer of
interest to a person other than a joint tenant, the State Treasurer will
recalculate the cost of the certificate using revised actuarial assumptions
reflecting the transfer. The actuarial calculation will be performed in the
same manner as the original actuarial calculation, using the new data supplied
by the titleholder and county assessor.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.944Recalculation of cost upon addition or deletion of allodial
titleholder to reflect change in titleholders and taxable value. (NRS 361.915,
361.920)

1. The addition or deletion of an allodial
titleholder may require a recalculation by the State Treasurer of the cost of
the certificate to reflect the actuarial assumptions of the life expectancy of
the allodial titleholders and the taxable value of the specific property.

2. Upon receipt of an application to add or
delete an allodial titleholder, the county treasurer shall notify the State
Treasurer, who will recalculate the actuarial assumptions based on the change
in titleholders and change in taxable value.

3. The State Treasurer will determine if any
additional amount needs to be paid for the cost of the certificate for that
property and notify the titleholders and the county treasurer.

4. A recalculation may not be needed if a
deletion occurs solely through the death of a titleholder without transfer of
the decedent’s interest to another person, including, without limitation, the
death of a joint tenant with survivorship rights.

1. The certificate may be transferred to the
heir of an allodial titleholder in accordance with NRS 361.910.

2. The State Treasurer will review the
information set forth in the application and determine if any additional
information is needed to process the transfer of the allodial title to the
heir.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

Annual Statement

NAC 361.950Provision by State Treasurer to designee. (NRS 361.920)Each
application for allodial title must list the first titleholder as the designee.
The State Treasurer will provide the designee with an annual statement listing:

1. The proper share of income earned on the
account of the titleholder in the Allodial Title Trust Account, with any
appropriate adjustments thereto; and

2. The amount of tax actually paid each year
with respect to the property, and other information relating to the program.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

Allodial Title Trust Account

NAC 361.956Efficient and secure maintenance; limitation on use of money for
investment and administrative expenses. (NRS 361.920)

1. The State Treasurer will ensure that the
Allodial Title Trust Account is efficiently and securely maintained.

2. Not more than 2 percent of the money in
the Allodial Title Trust Account will be used by the State Treasurer to cover
investment and administrative expenses, which will be deducted annually.

(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

NAC 361.958Recommended consultation with tax professional concerning income
tax liability and deductions relating to Account. (NRS 361.920)The
State Treasurer recommends that an allodial titleholder consult with a tax
professional concerning:

1. The income tax liability of the
titleholder with regard to the income and interest earned on the money in the
Allodial Title Trust Account attributable to the money paid into the Allodial
Title Trust Account by the titleholder; and

2. Whether and to what extent the property
taxes paid by the State Treasurer from the Allodial Title Trust Account with
respect to the property of the titleholder are deductible by the titleholder.